October 23, 2008
Alcoa to Reduce Production at Pt. Comfort, TX Refinery 25%
Alcoa (NYSE:AA) today announced it will reduce production at its Point Comfort, Texas alumina refinery by approximately 25 percent, or a reduction of approximately 550,000 metric tons per year, by the end of November.
The curtailment of two digesters at the Point Comfort facility follows Alcoa's announcement last month to curtail production at its Rockdale, Texas aluminum smelter as a result of uncompetitive power supply to that smelter and overall market conditions."Aluminum prices have fallen dramatically over the past few months," said Bernt Reitan, Alcoa Executive Vice President and President - Global Primary Products. "We are reviewing each and every potline across our entire global smelting system and we are doing the same with each digester within our worldwide refining system. We will continue to take steps to match production with demand in the marketplace, focusing on our highest cost operations."
As a result of the curtailment at Point Comfort, the workforce will be adjusted accordingly, with the majority of the impact on contractors at the refinery. Costs for the curtailment will not be material.
The Point Comfort refinery is part of Alcoa World Alumina and Chemicals (AWAC), a global alliance between Alcoa and Alumina Ltd, with Alcoa holding 60 percent.
Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa(R) wheels, fastening systems, precision and investment castings, and building systems. The Company has 97,000 employees in 34 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com