Home > Closures cost Alcoa over $100 million

Closures cost Alcoa over $100 million

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The cost of Alcoa winding down a smelter and rolling mills will be up to $109 million.

Fairfax reports that Alcoa’s chief financial officer William Oplinger, speaking at Alcoa’s June quarter results, said near $49 million had been spent prior to the closure of the Point Henry smelter and rolling mill.

Another $50 to $60 million was expected to be spent before the year’s end from the closure of the Point Henry operations and another rolling mill in Yennora, NSW.

The decision to close the facilities – The smelter is due to shut in August and the two rolling mills in December – came in August, after a strategic review commenced in early 2012.

The review found there was no prospect that the smelter could be made viable.

The company’s continues to operate the newer, more efficient Portland smelter.

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