Victorian and Australian Governments sign agreements with Alcoa
Alcoa
and AGL decide on energy supply
NEW YORK & AUSTRALIA
--(BUSINESS WIRE)--
PORTLAND ALUMINIUM SMELTER IN VICTORIA, AUSTRALIA TO RESTART CAPACITY
LOST AFTER POWER OUTAGE
Victorian and Australian Governments sign agreements with Alcoa
Alcoa
and AGL decide on energy supply
The Victorian and Australian governments and Alcoa Corporation (NYSE:AA)
today announced the Portland Aluminium smelter will restart capacity
that had been lost due to a December power outage. In addition, Alcoa
and energy provider AGL reached an agreement related to the electricity
supply for the smelter.
The four-year agreements with the governments and AGL will better
position Portland Aluminium against market fluctuations and help
maintain more than 500 jobs at the smelter.
“The Victorian State and Australian Federal governments are strong
proponents of the Portland Aluminium smelter, our employees, their
families and the broader Portland community, and we thank them for their
unwavering support,” said Roy Harvey, Chief Executive Officer of Alcoa.
“Today’s government and energy agreements will help make the Portland
smelter more resilient against market volatility, maintain hundreds of
jobs and provide a bridge to a potential long-term energy solution.”
Alcoa of Australia Chairman and Managing Director Michael Parker added:
“The recent displays of support have been outstanding, and our sincere
thanks go to everyone who has worked with us to make these agreements
possible. I acknowledge in particular the State of Victoria for its
determination and tireless support and the Australian Federal government
in helping us achieve this positive outcome for the Portland community.
To our employees, your hard work to stabilise the plant and your
flexibility in taking annual leave after the outage is greatly
appreciated. Our focus now will be on restoring capacity quickly and
safely.”
Alcoa will immediately begin work to restart smelting capacity that was
lost due to the fault on the Victorian transmission network in December,
which caused a five-hour power outage at the smelter. Restoring the
curtailed production is expected to take approximately six months. Prior
to the electrical fault, the smelter had been operating at nearly 85
percent of its nameplate capacity of 358,000 metric tons per year.
Terms of the electricity agreement with AGL were not disclosed.
As previously announced, the power outage at Portland Aluminium smelter
is not expected to have a significant, unfavorable impact on fourth
quarter results.
Portland Aluminium is an unincorporated joint venture between Alcoa of
Australia Limited (55 percent), CITIC Nominees Pty Ltd (22.5 percent),
and Marubeni Aluminium Australia Pty Ltd (22.5 percent). Alcoa of
Australia Limited is owned 60 percent by Alcoa Corporation and 40
percent by Alumina Limited.
On November 1, Alcoa Corporation announced
it had completed the separation from its parent company Alcoa Inc. (now
named Arconic Inc.) and began operating as an independent,
publicly-traded company.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and
aluminum products, with a strong portfolio of value-added cast and
rolled products and substantial energy assets. Alcoa is built on a
foundation of strong values and operating excellence dating back nearly
130 years to the world-changing discovery that made aluminum an
affordable and vital part of modern life. Since inventing 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.
Dissemination of Company Information
Alcoa Corporation intends to make future announcements regarding company
developments and financial performance through its website at www.alcoa.com.
Forward-Looking Statements
This press 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
“anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,”
“should,” “targets,” “will,” “would,” or other words of similar meaning.
All statements that reflect the Company’s expectations, assumptions or
projections about the future, other than statements of historical fact,
are forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties, and changes in circumstances that are difficult to
predict. Although the Company 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 our filings with the
Securities and Exchange Commission. The Company 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170119006261/en/
Alcoa Corporation
Investor Contact:
James Dwyer, 212-518-5450
James.Dwyer@alcoa.com
or
Media
Contacts:
(US) Monica Orbe, 212-518-5455
Monica.Orbe@alcoa.com
or
(AU)
Brian Doy, +61 404 800 690
Brian.Doy@alcoa.com.au
Source: Alcoa Corporation