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ALCOA TO SHUT UP FOUNDRY IN BRAZIL. $10-15-MILLION EXPENSES IN Q1

Issued at 2015-04-01



Alcoa intends to definitely shut up its foundry in Brazil within mid-April as part of a cost-cutting plan.
This initiative will generate reorganization expenses amounting to $10-15 millions or 1 cent per share in the corporate Q1 accounts.

In early March, the world’s leading aluminium group as for profits anticipated its intention to reduce its foundry activities by 14% on global stock surplus and decreasing prices.

After jumping over $2,000/ton last year, primary aluminium prices at the London Metal Exchange have dropped back to approx. $1,800/ton.

Alcoa has explained today that higher costs and more difficult conditions on the global market have made the Sao Luis (Brazil) plant non-competitive. 

Last May Alcoa had already reduced the production capacity at the Brazilian facility by 85,000 tons and further cut it by another 12,000 tons in October.


According to the latest declaration, Alcoa has decreased its foundry activities by 21% (740.000 tons).


Source: Aluplanet



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