Alcoa to close its 269,000 metric ton Warrick smelter in Indiana

Lightweight metals leader Alcoa today announced it will permanently close its 269,000 metric ton Warrick Operations aluminium smelter in Evansville, Indiana by the end of the first quarter 2016. The rolling mill and power plant at Warrick Operations will continue to operate.

Once the actions announced today and in the fourth quarter are implemented, Alcoa will have curtailed or closed 812,000 metric tons of smelting capacity since its announced review in March 2015 of 500,000 metric tons of smelting capacity.

Alcoa forecasts improving supply-demand balance in the aluminium market for 2016, and is focused on positioning the business for success throughout market cycles. The company is on target to meet or exceed its 2016 goals of moving to the 38th percentile on the aluminium cost curve.

“We recognize how deeply this decision impacts employees and we are committed to work closely with our employees, unions and community stakeholders to support them through this transition,” said Roy Harvey, President of Alcoa’s Global Primary Products. “Despite the hard work of employees, these assets are not competitive. We’re confident that these actions are the right ones in face of these challenging market conditions. We are committed to creating a resilient business ready for launch as an independent company in 2016.”