Alcoa Plans to Curtail Smelters in Italy and Spain as part of Global Primary Restructuring

Alcoa intends to curtail operations at three European aluminum smelters as part of a previously announced restructuring in its Global Primary Products business.

The restructuring will reduce the Company’s global smelting capacity by 12 percent or 531,000 metric tons. Operations at Alcoa’s Portovesme, Italy, as well as La Coruña and Avilés, Spain, smelters are designated for curtailment, with the intended actions to be completed in the first half of 2012. The facilities are among the highest-cost producers in the Alcoa system. Last week, Alcoa announced the permanent closure of the Company’s smelter in Alcoa, Tennessee, and two potlines at its Rockdale, Texas, smelter.

At Portovesme, Alcoa will begin the consultation process to permanently close the facility. The La Coruña and Avilés curtailments are planned to be partial and temporary. An uncompetitive energy position, combined with rising raw material costs and falling aluminum prices, led to the planned curtailment of the facilities. The curtailments represent 240,000 metric tons, or about 5 percent, of Alcoa’s global smelting capacity. Total capacity at Portovesme is 150,000 metric tons. Capacity at La Coruña and Avilés is 87,000 and 93,000 metric tons per year, respective