Alcoa Completes Sales of Two Upstream Assets
December 01 2014 - 4:03PM
Business Wire
Mt. Holly Smelter and Jamalco Divestitures
Further Company Strategy to Create a Globally Competitive Commodity
Business
Alcoa (NYSE: AA) today announced that it has completed two
previously-announced sales within its Global Primary Products
portfolio. The divestitures, one in the United States and the
second in Jamaica, are aligned with Alcoa’s strategy to lower its
cost base and create a globally competitive business.
Alcoa World Alumina and Chemicals (AWAC) finalized the sale of
its 55 percent ownership stake in the Jamalco bauxite mining and
alumina refinery joint venture to Noble Group Ltd. The Company
completed the sale, announced on October 15, 2014, after receiving
all regulatory approvals. Jamalco is located in Clarendon,
Jamaica.
AWAC will continue as Jamalco’s managing operator for three
years under a compensated service agreement and employees remain
employed by Jamalco. AWAC is the joint venture owned 60 percent by
Alcoa and 40 percent by Alumina Limited of Australia.
Alcoa also finalized the sale of its 50.3 percent interest in
the Mt. Holly aluminum smelter in Goose Creek, South Carolina, to
Century Aluminum Company. The smelter has the capacity to produce
229,000 metric tons of aluminum annually. Alcoa announced its plan
to sell its stake to Century on October 23, 2014.
Both sales are in line with Alcoa's strategy to create a
globally competitive commodity business. In its Primary Metals
business, the Company has curtailed, closed or sold 1.3 million
metric tons, or 31 percent of its highest cost global smelting
capacity since 2007. At Alcoa’s 2014 Investor Day, the Company
reaffirmed its goal to lower its position on the global aluminum
cost curve by five percentage points from the 43rd percentile to
the 38th percentile by 2016. In its Alumina business, the Company
said that its position on the alumina cost curve had improved to
the 25th percentile in 2014 from the 27th percentile in 2013. Alcoa
also reaffirmed its goal to further improve that cost position to
the 21st percentile by 2016.
About Alcoa
A global leader in lightweight metals technology, engineering
and manufacturing, Alcoa innovates multi-material solutions that
advance our world. Our technologies enhance transportation, from
automotive and commercial transport to air and space travel, and
improve industrial and consumer electronics products. We enable
smart buildings, sustainable food and beverage packaging,
high-performance defense vehicles across air, land and sea, deeper
oil and gas drilling and more efficient power generation. We
pioneered the aluminum industry over 125 years ago, and today, our
approximately 62,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For
more information, visit www.alcoa.com, follow @Alcoa on Twitter at
www.twitter.com/Alcoa and follow us on Facebook at
www.facebook.com/Alcoa.
AlcoaInvestor ContactKelly Pasterick,
212-836-2674Kelly.Pasterick@alcoa.comorMedia ContactMonica Orbe,
212-836-2632Monica.Orbe@alcoa.com
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