The Canadian Press - ONLINE EDITION

Alcoa will close aluminum smelter and 2 mills in Australia by year end

  • Print

NEW YORK, N.Y. - Alcoa Inc. said Monday that it will close an aluminum smelter and two mills in Australia by the end of the year.

The company said it has been studying options for a 50-year-old smelter in Geelong, Victoria, for two years and will close it in August. The smelter has about 500 workers.

A rolling mill near the smelter and another mill and recycling centre in Yennora, New South Wales, will close by year end. They employ an additional 480 people.

Faced with stubbornly low prices for aluminum due to global overcapacity, Alcoa has been idling and closing smelters to reduce capacity. When the last moves are completed, Alcoa will have cut its smelting capacity by 17 per cent. The company is increasingly shifting into making aluminum products for aviation, auto and other industries.

The company expects to take restructuring charges against earnings of between $250 million and $270 million, or 22 cents to 25 cents per share, with 60 per cent in the first quarter.

Chairman and CEO Klaus Kleinfeld said the smelter and mills "are no longer competitive and are not financially sustainable today or into the future."

The company said it would seek to sell a coal mine and power station that provides about 40 per cent of the electricity for the smelter.

Another smelter in Victoria and bauxite-mining and alumina-refining operations in western Australia will keep running, the company said.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Blake Wheeler talks about past season

View more like this

Photo Store Gallery

  • Marc Gallant/Winnipeg Free Press. Gardening Column- Assiniboine Park English Garden. July 19, 2002.
  • MIKE APORIUS/WINNIPEG FREE PRESS STANDUP - pretty sunflower in field off HWY 206 near Bird's Hill Park Thursday August 09/2007

View More Gallery Photos

Poll

Do you agree with the province’s crackdown on flavoured tobacco products?

View Results

View Related Story

Ads by Google