Alcoa begins partial restart of Indiana smelter

2017-07-12

Once ramped up, the smelter will reach an annual output of 161,400 metric tonnes annually. The restart is supported by an offer of up to $2.4 million in conditional tax credits from Indiana Economic Development.

The Warrick Operations were idled in March 2016 "to increase the competitiveness of its upstream business amid prevailing market conditions," the company said. During March 2016, the LME three-month official price was trading at approximately $1,490 per ton. Three-month official aluminum prices have risen significantly, closing just under $1,900 per ton today.

"By restarting a portion of the Warrick smelter, we will provide an efficient source of metal for the co-located rolling mill and help it meet an anticipated increase in production volumes," said Tim Reyes, president of Alcoa's aluminum business unit.

The mill produces aluminum sheet for use in beverage cans and food packaging. It has hot- and cold-rolling capabilities. The company expects to incur between $30-35 million in restart expenses during the third and fourth quarters. Alcoa will record an after-tax benefit of $25 million for the reversal of liabilities related to the original closure in the third quarter.