Alcoa may build new Brazil smelter, shut others

Alcoa Inc., the largest U.S. aluminum producer, said it may invest $3 billion in a new smelter in Brazil and shut other units in the South American country because of "prohibitive" energy costs.

Energy costs at its plants in the northeastern state of Maranhao are the highest among Alcoa's plants worldwide, said the company's managing director in Brazil, Franklin Feder.

Alcoa may build a hydroelectric dam to power the new plant in Para state, Feder said. Separately, New York-based Alcoa said yesterday it will "temporarily" close its Fusina smelter near Venice.