Alcoa Corporation Provides Update Regarding Wenatchee Smelter in Washington State
June 18 2018 - 4:10PM
Business Wire
Alcoa, a global leader in bauxite, alumina and aluminum
products, announced today that it will make a $62.4 million payment
under an electricity supply agreement for its smelter in Wenatchee,
Washington, and will permanently close one of four potlines at the
fully curtailed facility.
In connection with the planned payment on June 19, 2018, and the
closure of the one potline, the Company will record an estimated
charge of $73 million (pre- and after-tax), or $0.39 per share, in
the second quarter of 2018.
The payment to the Chelan Public Utility District (Chelan PUD)
was triggered by a recent decision of Alcoa management to not
restart the Wenatchee smelter within the term provided in the
amended electricity supply agreement. Under the agreement, which
expires on October 31, 2028, Alcoa receives 26 percent of the
electric generation from two Chelan PUD hydropower projects for the
Wenatchee smelter.
During the smelter’s curtailment, Chelan PUD sells unused power
on Alcoa’s behalf, and the proceeds are applied toward Alcoa’s
costs under the agreement. Other than these monthly power
transactions, there are no other required payments.
The potline planned for closure, Line 3 (capacity of 38,000
metric tons per year), has not operated since 2001, and the
investments needed to restart that line are cost prohibitive. Three
other lines at the Wenatchee site, with 146,000 metric tons per
year, have been curtailed since December 2015. Another line at the
Wenatchee site was permanently closed in 2004.
The closed portions at the Wenatchee site will be evaluated for
potential redevelopment, which will not affect the status of the
three remaining curtailed potlines.
About Alcoa
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back nearly 130 years
to the world-changing discovery that made aluminum an affordable
and vital part of modern life. Since developing the aluminum
industry, and throughout our history, our talented Alcoans have
followed on with breakthrough innovations and best practices that
have led to efficiency, safety, sustainability, and stronger
communities wherever we operate. Visit us online on www.alcoa.com,
follow @Alcoa on Twitter, and on Facebook at
www.facebook.com/Alcoa.
Dissemination of Company Information
Alcoa Corporation intends to make future announcements regarding
company developments and financial performance through its website
at www.alcoa.com.
Forward-Looking Statements
This press release contains statements that relate to future
events and expectations and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “anticipates,” “believes,” “could,”
“estimates,” “expects,” “forecasts,” “intends,” “may,” “outlook,”
“plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,”
“would,” or other words of similar meaning. All statements that
reflect the Company’s expectations, assumptions or projections
about the future, other than statements of historical fact, are
forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to known and
unknown risks, uncertainties, and changes in circumstances that are
difficult to predict. Although the Company believes that the
expectations reflected in any forward-looking statements are based
on reasonable assumptions, it can give no assurance that these
expectations will be attained and it is possible that actual
results may differ materially from those indicated by these
forward-looking statements due to a variety of risks and
uncertainties. Additional information concerning factors that could
cause actual results to differ materially from those projected in
the forward-looking statements is contained in our filings with the
Securities and Exchange Commission. The Company disclaims any
obligation to update publicly any forward-looking statements,
whether in response to new information, future events or otherwise,
except as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180618006042/en/
AlcoaInvestor ContactJames Dwyer,
412-992-5450James.Dwyer@alcoa.comorMedia ContactJim Beck,
412-315-2909Jim.Beck@alcoa.com
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