Alcoa reviewing smelting capacity

Alcoa is reviewing 11% of its smelting capacity for possible curtailment or shut down, but company officials won’t say whether its Berkeley County smelter, Alcoa Mt. Holly is part of the review.

Alcoa announced the review in May, saying the company may need to reduce capacity since aluminum prices have fallen more than 33% since its peak in 2011. The company expects the review to last 15 months.

Monica Orbe, a spokeswoman for the company, said Alcoa wouldn’t discuss specific facilities and regions that may be part of the review, which will include facilities across the Alcoa system.

It will also focus on plants with higher costs and plants with more long-term risk due to energy costs or regulatory uncertainty. Curtailments could affect 11% of Alcoa’s global smelting capacity.

“Because of persistent weakness in global aluminum prices, we need to review every option to maintain Alcoa’s competitiveness,”said Chris Ayers, president of Alcoa’s Global Primary Products.“Any action taken will only be done after a thorough strategic review and consultations with stakeholders.”

Alcoa Mt. Holly is one of seven smelters located across the U.S. and 22 worldwide. It’s run through a partnership between Alcoa and Century Aluminum Co.

Alcoa will consider a variety of alternative actions during the review, including curtailments and permanent shutdowns. Its alumina refining system will also be reviewed.