Lightweight metals leader Alcoa has curtailed the 887,000 metric tons per year of alumina refining capacity of Suralco, the aluminum producing company it owns with Alumina Ltd.
The refinery is scheduled to be idled by 30 November 2015 while discussions continue with the Government of Suriname on preserving the country’s bauxite and refining industry. Discussions between Alcoa and the government began in October 2014 to reach a joint solution for Suralco that has faced expiring bauxite reserves and lacks a long-term energy solution.
‘Suralco’s ongoing energy challenges and limited bauxite supply, combined with unfavorable market conditions, mean it is no longer possible to continue operations,’ said Bob Wilt, president of Alcoa global primary products. ‘Our immediate attention now turns to the employees of Suralco who have worked hard during these challenging times. We understand how difficult this decision is for employees and we will work closely with them and our unions, government and community stakeholders during the transition.’
Total restructuring related charges in the second half of 2015 associated with the curtailment are expected to be between US$65 million and US$75 million after-tax and non-controlling interest.
This story is reprinted from material from Alcoa, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
