Expansion Management

Alcoa to Close Costly Italian Plant

Aug. 25, 2014

"The fundamental reasons that made the Portovesme smelter uncompetitive unfortunately have not changed," said Bob Wilt, president, Alcoa Global Primary Products.

Agence France-Presse

NEW YORK -- Aluminum giant Alcoa (IW 500/53) said Monday that it would permanently close a smelter in Italy as it seeks to lower production costs around the world.

The company had curtailed activity at the Portovesme smelter on the Italian island of Sardinia in 2012 due to its high operating costs.

"The fundamental reasons that made the Portovesme smelter uncompetitive unfortunately have not changed," said Bob Wilt, president, Alcoa Global Primary Products.

The closure will reduce Alcoa's global smelting capacity by 150,000 metric tons to 3.6 million tons per year.

Alcoa said it expected to book a third-quarter charge between $170 million and $180 million for the closure.

Copyright Agence France-Presse, 2014

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.