Alcoa to Consider Next Steps for the San Ciprián Smelter in Spain
December 17 2020 - 4:10PM
Business Wire
Alcoa Corporation announced today that it will halt curtailment
plans for its San Ciprián aluminum smelter in Spain while it
reviews a court decision related to a collective dismissal
process.
On October 9, 2020, Alcoa announced its decision to curtail the
smelter’s 228,000 metric tons of annual capacity and proceed with
the collective dismissal of employees after completing four months
of consultations with the workers’ representatives at the San
Ciprián aluminum plant. The alumina refinery at San Ciprián was not
included in the consultation.
The workers’ representatives filed a lawsuit with the High Court
of Justice of Galicia, which ruled in favor of the workers on
Thursday, December 17, 2020. In the court’s ruling, it declared the
collective dismissal process “null and void.”
As a result, in the fourth quarter of 2020, the Company will not
incur the approximately $35 million to $40 million it previously
announced as an expected charge for employee-related costs
associated with the curtailment and collective dismissal
process.
In addition, due to a related labor strike at both the San
Ciprián aluminum smelter and alumina refinery, the Company will
record a negative impact on income before income taxes in the
fourth quarter 2020 of approximately $10 million, primarily related
to the refinery. The court’s ruling does not resolve the labor
strike.
The Company believes it has acted in good faith and in full
compliance with the law. The need to restructure the San Ciprián
smelter persists due to significant and permanent structural
issues.
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 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.
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assumptions or projections about the future, other than statements
of historical fact, are forward-looking statements. Forward-looking
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to known and unknown risks, uncertainties, and changes in
circumstances that are difficult to predict. Although Alcoa
Corporation 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 Alcoa
Corporation’s filings with the Securities and Exchange Commission.
Alcoa Corporation 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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company developments and financial performance through its website,
www.alcoa.com, as well as through press releases, filings with the
Securities and Exchange Commission, conference calls and
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Investor Contact James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contacts Jim Beck 412-315-2909 Jim.Beck@alcoa.com
Clara Acebes Spain +34 914068280 Clara.Acebes@alcoa.com
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