Alcoa Announces Closure of Wenatchee Smelter in Washington State
December 13 2021 - 3:10PM
Business Wire
Alcoa Corporation (NYSE: AA) announced today the closure of
146,000 metric tons of aluminum smelting capacity at the Wenatchee
Works aluminum smelter located in the state of Washington.
The process to permanently decommission the smelter, which has
been fully idle since 2015, will begin immediately to prepare the
Wenatchee site for potential redevelopment.
“Our analysis does not support the long-term operation of the
Wenatchee smelter, so we are now focused on preparing this site for
a new future,” said Alcoa President and CEO Roy Harvey. “We
appreciate the support that Alcoa has received from our community
stakeholders over these many years, and we look forward to
continued work with them to develop a robust redevelopment and
reuse plan for the site.”
Alcoa will record restructuring and related charges in the
fourth quarter 2021 of approximately $75 million (pre- and
after-tax), or $0.40 per share, related to the permanent closure.
Cash outlays related to the permanent closure of the site are
expected to be approximately $60 million over the next seven years,
with approximately $10 million to be spent in 2022.
The projected cash outlays do not include any potential proceeds
from the planned redevelopment efforts. The Wenatchee site includes
approximately 2,800 acres of land with intermodal transportation
and utility infrastructure.
The Wenatchee site currently employs 18 people, some of whom
will remain to assist with demolition and redevelopment work.
Today’s closure announcement aligns with Alcoa’s five-year
review of its operating assets and brings Alcoa’s total global
smelting capacity to 2.8 million metric tons. First announced in
October of 2019, the portfolio review includes evaluations for 1.5
million metric tons of smelting capacity for significant
improvements, curtailments, closures, or divestitures.
With today’s action, the Company has achieved approximately 60
percent of its 1.5 million metric ton goal in its smelting
portfolio review through announced improvements at Portland
Aluminium in Australia and Alumar in Brazil and the curtailment of
the Intalco smelter in Washington State.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back 135 years to the
world-changing discovery that made aluminum an affordable and vital
part of modern life. Since developing the aluminum industry, and
throughout our history, our talented Alcoans have followed on with
breakthrough innovations and best practices that have led to
efficiency, safety, sustainability, and stronger communities
wherever we operate.
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Alcoa Corporation believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained, and
it is possible that actual results may differ materially from those
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Investor Contact James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contact Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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