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Alcoa reaches agreement with Spanish plant concerning energy prices

Alcoa Corp. and representatives from its aluminum plant in San Ciprián, Spain, reached an agreement on Dec. 29 that resolves ongoing issues stemming from energy prices.

Under the agreement, the curtailment activities began on Saturday and will be completed before the end of the month. Activities will be curtailed for two years and will restart in January 2024.

The smelter has a 228,000 metric ton annual capacity. The facility’s alumina refinery and casthouse will continue to operate.

During the curtailment period, Alcoa will seek long-term power purchase agreements that will begin in 2024.

Alcoa also will commit $35 million for restart costs and $68 million for capital investments, and it will pay full wages and benefits.

The smelter’s employees agreed to cease striking immediately.

“With this agreement, we now have a path to resolve the significant challenges that the facility has faced and can begin to build a stronger smelter in two years,” Alcoa President and CEO Roy Harvey said. “This has been a challenging road for everyone involved, and we look forward to the future, working constructively with our employees and stakeholders to implement the agreement we reached.”

In 2022, the aluminum plant is expected to result in an annual net loss before taxes of approximately $20 million to $25 million for Alcoa.

Melina Druga

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