Noranda Aluminum Announces Labor Agreement
Noranda Aluminum Holding Corporation (the “Company”) and its wholly owned subsidiary Noranda Aluminum, Inc. announced that on August 17, 2007, the Company and the United Steelworkers of America Local 7686 reached a five-year labor agreement for employees at the Company’s 254,000 metric ton primary aluminum smelter in New Madrid, Missouri. The new labor agreement is effective September 1, 2007 and replaces the former contract that expired on August 31, 2007.
The new labor contract is the third consecutive five-year agreement between Noranda Aluminum, Inc. and Local 7686 and provides for wage increases in each year of the contract as well as improvements in pension and other benefit plans.
“We are pleased to have successfully concluded negotiations on this five-year contract that is fair to both our employees and the Company and will allow us to continue focusing on meeting the needs of our customers in an increasingly competitive global economy,” stated Primary Products President Keith Gregston.
About the Company
Noranda Aluminum Holding Corporation is a leading North American integrated producer of value-added primary aluminum products as well as high quality rolled aluminum coils. We have two businesses, our primary metals business, or upstream business, which produces 254,000 metric tons of primary aluminum annually, and our rolling mills, or downstream business, which is one of the largest foil producers in North America and a major producer of light gauge sheet products. Noranda Aluminum Holding Corporation is a private company owned by affiliates of Apollo Management, L.P.
Cautionary Statements
Forward-looking statements speak only as of the date made. We undertake no obligation to update any forward-looking statements, including prior forward-looking statements, to reflect the events or circumstances arising after the date as of which they were made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us.
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views as to future events and financial performance with respect to our operations. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “aim,”"anticipate,”"are confident,”"estimate,”"expect,”"will be,”"will continue,”"will likely result,”"project,”"intend,”"plan,”"believe,”"look to” and other words and terms of similar meaning in conjunction with a discussion of future operating or financial performance.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Factors that might cause such a difference include: our substantial indebtedness, and the possibility that we may incur more indebtedness; restrictive covenants in our indebtedness that may adversely affect our operations; as a holding company, repayment of our debt is dependent on cash flow generated by our subsidiaries; the cyclical nature of the aluminum industry and fluctuating commodity prices, which cause variability in our earnings and cash flows; a downturn in the end-use markets for certain of our products; losses caused by disruptions in the supply of power; changes in the relative cost of certain raw materials and energy compared to the price of primary aluminum and aluminum rolled products; the effectiveness of our hedging strategies in reducing the variability of our cash flows; unexpected issues arising in connection with our joint ventures; the effects of competition in our business lines; the relative appeal of aluminum compared with alternative materials; our ability to retain customers, a substantial number of which do not have long-term contractual arrangements with us; our ability to fulfill our business’s substantial capital investment needs; the cost of compliance with and liabilities under environmental safety, production and product regulations; natural disasters; labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; unexpected issues arising in connection with our operations outside of the United States; our ability to retain key management personnel; our expectations with respect to our acquisition activity, or difficulties encountered with acquisitions, dispositions or similar transactions; the ability of our insurance to cover fully our potential exposures; our lack of history as an independent company or financial statements that reflect operations as an independent company; unexpected costs incurred in separation our business from Xstrata; limitations on operating our business as a result of covenant restrictions under our indebtedness; and the ability of our customers to satisfy their financial commitments.