NEW YORK--(BUSINESS WIRE)--Lightweight metals leader Alcoa (NYSE:AA) today announced it has reached an agreement with the Bonneville Power Administration (BPA) that will help improve the competitiveness of its Intalco smelter. As a result, the smelter will not curtail at the end of the second quarter as previously announced by the Company.
The amendment to the power contract is effective July 1, 2016 through Feb. 14, 2018 and provides for additional access to market power during this period.
This short-term amendment with BPA, combined with the state of Washington’s $3 million budget proviso for workforce training, are key factors in helping Intalco remain competitive. Alcoa thanks Governor Inslee; its federal delegation led by Senators Murray and Cantwell, and Representatives DelBene and Larsen; the state legislative delegation led by Senators Ranker and Ericksen; and BPA for their support.
Intalco Works, located in Washington State, has a capacity of 279,000 metric tons per year.
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 58,000 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.
Forward Looking Statements
This 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 “estimates,” “expects,” “goal,” “plans,” “should,” “target,” “will,” “would,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding the competitiveness of the Intalco smelter. Forward-looking statements are subject to risks, uncertainties and other factors, and are not guarantees of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: (a) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices and premiums, as applicable, for primary aluminum, alumina, and other products, and fluctuations in indexed-based and spot prices for alumina; (b) Alcoa’s inability to successfully realize goals established in each of its business segments, at the levels or by the dates targeted for such goals (including moving its alumina and aluminum businesses down on the industry cost curves and increasing revenues and improving margins in its value-add businesses); (c) Alcoa’s inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, divestitures, facility closures, curtailments, or expansions, or international joint ventures; (d) political, economic, and regulatory risks in the countries in which Alcoa operates, including unfavorable changes in laws and governmental policies, tax rates, civil unrest, or other events beyond Alcoa’s control; (e) the outcome of contingencies, including legal proceedings and environmental remediation; (f) deterioration in global economic and financial market conditions generally; and (g) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2015, and other reports filed with the Securities and Exchange Commission. Alcoa 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.