Alcoa Corporation (NYSE: AA) today announced it plans to fully
curtail production in 2024 at its Kwinana Alumina Refinery in
Western Australia, with the process beginning in the second
quarter.
The Kwinana refinery has an annual nameplate production capacity
of 2.2 million metric tons. The refinery has been operating at
approximately 80 percent of its nameplate capacity since January of
2023.
Matt Reed, Alcoa’s Executive Vice President and Chief Operations
Officer, said the determination to curtail the 60-year-old facility
is based on a variety of factors, including its age, scale,
operating costs and current bauxite grades, in addition to current
market conditions.
“Today’s curtailment decision comes only after thorough and
careful deliberation, and we acknowledge that this action will
impact workers, business partners, and the community,” Reed
said.
“We deeply appreciate the commitment and support of our many
loyal employees, contractors, and suppliers at our Kwinana
refinery, which has made a major contribution to Western
Australia’s economic development over the last 60 years of
continual operation.”
The curtailment will include a phased reduction of the workforce
from around 800 employees at the start of 2024 to approximately 250
in the third quarter of this year, when all alumina production will
cease. Certain processes, however, will continue until about the
third quarter of 2025, when employee numbers will be further
reduced to approximately 50.
“We will work closely with our employees to provide support with
transitioning to other opportunities,” Reed said. “This includes
potential redeployment within our business or assistance to
facilitate employment at other workplaces.”
The refinery and associated residue storage facilities will
continue to be actively managed. Alcoa’s port facilities located
alongside the refinery will continue to operate to import raw
materials and export alumina produced at the Company’s Pinjarra
Alumina Refinery. Production at the Pinjarra and Wagerup refineries
is not expected to be impacted by the curtailment at Kwinana.
“We remain committed to WA in the long-term and will continue to
assess options for the refinery, monitoring the factors that have
led to the curtailment decision,” Reed said.
The Kwinana refinery recorded a net loss (pre-tax and
noncontrolling interest) of approximately $130 million in 2023. The
Company expects annual improvements of approximately $70 million
beginning in the third quarter of 2024 as a result of the
curtailment. The refinery will continue to incur approximately $40
million of non-cash depreciation, depletion and amortization
expenses while curtailed.
In the first quarter of 2024, Alcoa will record restructuring
charges between $180 million and $200 million, related to the
curtailment of the refinery. Alcoa’s share (after-tax and
noncontrolling interest) will be between $76 million and $84
million, or $0.42 to $0.47 per share. The charges include
approximately $81 million for water management costs, $55 million
for employee related costs, $26 million for asset retirement
obligations, and $18 million of other costs. Alcoa’s share of
related cash outlays of approximately $115 million (which includes
existing employee related liabilities and asset retirement
obligations) is expected to be spent in 2024 ($80 million) and 2025
($35 million).
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina
and aluminum products with a vision to reinvent the aluminum
industry for a sustainable future. Our purpose is to turn raw
potential into real progress, underpinned by Alcoa Values that
encompass integrity, operating excellence, care for people and
courageous leadership. Since developing the process that made
aluminum an affordable and vital part of modern life, our talented
Alcoans have developed breakthrough innovations and best practices
that have led to improved safety, sustainability, efficiency, and
stronger communities wherever we operate.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company
developments and financial performance through its website,
www.alcoa.com, as well as through press releases, filings with the
Securities and Exchange Commission, conference calls and webcasts.
The Company does not incorporate the information contained on, or
accessible through, its corporate website into this press
release.
Forward-Looking Statements
This release contains statements that relate to future events
and expectations and as such constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include those containing such
words as “aims,” “ambition,” “anticipates,” “believes,” “could,”
“develop,” “endeavors,” “estimates,” “expects,” “forecasts,”
“goal,” “intends,” “may,” “outlook,” “potential,” “plans,”
“projects,” “reach,” “seeks,” “sees,” “should,” “strive,”
“targets,” “will,” “working,” “would,” or other words of similar
meaning. All statements by Alcoa that reflect expectations,
assumptions or projections about the future, other than statements
of historical fact, are forward-looking statements, including,
without limitation, forecasts concerning global demand growth for
bauxite, alumina, and aluminum, and supply/demand balances;
statements, projections or forecasts of future or targeted
financial results, or operating performance (including our ability
to execute on strategies related to environmental, social and
governance matters); statements about strategies, outlook, and
business and financial prospects; and statements about capital
allocation and return of capital. These statements reflect beliefs
and assumptions that are based on Alcoa’s perception of historical
trends, current conditions, and expected future developments, as
well as other factors that management believes are appropriate in
the circumstances. Forward-looking statements are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties, and changes in circumstances that are difficult to
predict. Although Alcoa 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 indicated by these forward-looking statements due to a
variety of risks and uncertainties. Such risks and uncertainties
include, but are not limited to: (a) cyclicality of the aluminum
industry and aluminum end use markets, including due to the
influence of global economic conditions, and unfavorable changes in
the markets served by Alcoa; (b) the effects of non-market forces,
such as government policies and political instability, on global
aluminum supply and demand; (c) volatility and declines in aluminum
industry, including global supply and demand conditions and
fluctuations in London Metal Exchange-based prices and premiums, as
applicable, for primary aluminum and other commodities, and
fluctuations in indexed-based and spot prices for alumina; (d)
legal, regulatory, economic, political, trade, public health and
safety, and reputational risks and conditions, including changes in
conditions beyond our control as a result of our participation in
increasingly competitive and complex global markets; (e) our
ability to obtain, maintain, or renew permits or approvals
necessary for our mining operations; (f) unfavorable changes in
cost, quality, or availability of key inputs, including energy and
raw materials, or uncertainty of or disruption to the supply chain
including logistics; (g) our ability to realize expected benefits
or achieve intended results, including as planned and by targeted
completion dates, from announced strategies, plans, programs, or
initiatives relating to our portfolio, profitability, capital
investments, and developing technologies, and from joint ventures
or other strategic alliances or business transactions; (h)
fluctuations in foreign currency exchange and tax rates on costs
and results; (i) changes in tax laws or exposure to additional tax
liabilities; (j) changes in global economic and financial market
conditions generally, such as inflation, recessionary conditions,
and interest rate increases, which may also affect Alcoa’s ability
to obtain credit or financing upon acceptable terms or at all; (k)
current and potential future impacts to the global economy and our
industry, business and financial condition caused by various
worldwide or macroeconomic events, such as the ongoing conflict
between Russia and Ukraine; (l) global competition within and
beyond the aluminum industry; (m) our ability to obtain or maintain
adequate insurance coverage; (n) the outcomes of contingencies,
including legal and tax proceedings, government or regulatory
investigations, and environmental remediation, or changes in
foreign and/or U.S. federal, state, or local laws, regulations, or
policies; (o) the impacts of climate change, related legislation or
regulations, and efforts to reduce greenhouse gas emissions and our
ability to achieve strategies and expectations related to climate
change and other environmental matters; (p) claims, costs and
liabilities resulting from the impact of our operations, including
impoundments, or from health, safety, and environmental laws,
regulations, and requirements, in the areas where we operate; (q)
the impact of cyberattacks and potential information technology or
data security breaches, including disruptions to our operations,
liability, and reputational harm; (r) our ability to fund capital
expenditures; (s) risks associated with long-term debt obligations
including restrictions on our current and future operations as a
result of our indebtedness; (t) our ability to continue to return
capital to stockholders through cash dividends and/or share
repurchases; (u) the impact of labor disputes, work stoppages and
strikes, or other employee relations issues, as well as labor
market conditions; (v) declines in the discount rates used to
measure pension and other postretirement benefit liabilities or
lower-than-expected investment returns on pension assets, or
unfavorable changes in laws or regulations that govern pension plan
funding; and (w) the other risk factors discussed in Alcoa’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2022 and
other reports filed by Alcoa with the SEC. Alcoa disclaims any
obligation to update publicly any forward-looking statements,
whether in response to new information, future events or otherwise,
except as required by applicable law. Market projections are
subject to the risks described above and other risks in the
market.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240108270916/en/
Investor Contact: James Dwyer 412-992-5450
James.Dwyer@alcoa.com Media Contact: Jim Beck 412-315-2909
James.Beck@alcoa.com
Alcoa (NYSE:AA)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Alcoa (NYSE:AA)
Gráfica de Acción Histórica
De May 2023 a May 2024