Alcoa announced on Wednesday, October 17, its intention to cease operations at its Avilés and La Coruña aluminium plants in Spain with a combined annual production of 180,000 tonnes. The Aviles and La Coruna plants were two of the least productive within the Alcoa system due to structural issues such as inefficient technology and high fixed costs and small production capacity.
“Those problems, together with external market factors such as overproduction in China, high raw material prices and energy costs, have generated significant losses in these two plants in the last two years,” the company said.
Per Spanish law, Alcoa will initiate a mandatory 30-day consultation period with the workers’ representatives to achieve the best possible outcome for the company and its workforce.
“An analysis of Alcoa’s operations in Spain found that organizational improvements could be achieved if the company ceased production at its Avilés and La Coruña facilities and reorganized production at a single plant in San Ciprián, which produces both alumina and aluminium,” Alcoa said.
Alcoa reported a net loss of $41 million or $0.22 per share in third quarter 2018. The company reported $795 million of adjusted EBITDA excluding special items, down 12 percent from $904 million in second quarter 2018, primarily due to lower aluminium prices. Revenue stood at $3.4 billion, down 5 percent sequentially, primarily due to lower realized aluminium prices and decreased aluminium product shipments.
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