Alcoa Corporation Provides Update on Avilés and La Coruña Plants in Spain
July 05 2019 - 9:15AM
Business Wire
Alcoa Corporation, a global leader in bauxite, alumina, and
aluminum products, today announced that it has signed a conditional
share purchase agreement with private equity investment firm PARTER
Capital Group AG, based in Schindellegi, Switzerland, to acquire
the Alcoa Avilés and La Coruña aluminum plants in Spain. The plants
include the casthouses at both facilities and the paste plant at La
Coruña, which are currently in operation, and the two curtailed
smelters.
Alcoa has reached an agreement with the workers’ representatives
relating to a transaction between the Company and PARTER Capital
Group AG. However, a final acquisition is subject to a
buyer-provided credit facility to support future operations. If the
acquisition cannot be completed by July 31, 2019 (extended from the
original June 30, 2019 deadline), the collective dismissal and
social plan are expected to go into effect on August 1, 2019.
Alcoa reached an agreement in January 2019 with the workers’
representatives at the two aluminum plants as part of the
collective dismissal process announced in October 2018. As part of
that agreement, the smelters, with combined operating capacity of
124,000 metric tons per year, were curtailed in February and
maintained in restart condition, in the event that third parties
had interest in acquiring the facilities.
Alcoa thanks the central government and those of Asturias and
Galicia, as well as the workers’ representatives, for their ongoing
support through this process.
Alcoa expects to record restructuring-related charges in the
third quarter of 2019, rather than in the second quarter of 2019,
estimated to range from $100 million to $140 million (pre- and
after-tax), or $0.54 to $0.75 per share, depending on whether an
acquisition or collective dismissal occurs. Related cash outlays
are expected to be approximately $100 million to $130 million, with
approximately half to be paid in 2019.
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 to more than 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/20190705005178/en/
Investor Contacts James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contacts Jim Beck 412-315-2909 Jim.Beck@alcoa.com
Clara Acebes +34 914068280 Clara.Acebes@alcoa.com
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