Alcoa continue to operate its aluminum atomizer atRockdale

Tag : power Supplies

Alcoa Inc will record a third-quarter, pretax charge of about $48million to cover the costs, which spokesman Kevin Lowery said wouldbe mostly related to the lay-offs.
Production might resume at the smelter if Alcoa (nyse: AA - news - people ) secures reliable power supplies, but in the meantime 'we willnot make aluminum at Rockdale,' he said.
The company will continue to operate its aluminum atomizer atRockdale, producing satellite fuel from aluminum, and also keepproducing anode there, Lowery said.
In its announcement, Alcoa said it would immediately curtail theremaining production at the Rockdale smelter, of about 150,000metric tons a year, as 'a result of uncompetitive power supply tothat smelter and overall market conditions.'
Aluminum is made by smelting alumina, which is refined frombauxite. Alcoa will adjust production of alumina as a result of theRockdale shutdown, it said.
In June, the company idled three of the Rockdale plant's sixoperating potlines that had produced about 120,000 metric tons peryear, 'as a result of ongoing local power supply issues.'
Alcoa at the time cited problems with the reliability of theon-siteern
power generating unit, Sandow Unit (nyse: UNT - news - people ) 4, run by generating company Luminant, and the high cost ofbuying replacement power in the market.
The layoffs follow another 160 jobs that were cut earlier. The jobswill be phased out mostly toward the end of November and in earlyDecember, Alcoa said.
Alcoa's stock rose 96, or 4.5 percent, at $22.34 at mid-afternoonon the New York Stock Exchange.
(Reporting by Steve James, editing by Richard Chang) Keywords:ALCOA/SMELTER
Varghese Joseph
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