Alcoa Engages With Spanish Government Regarding San Ciprián Complex; The Refinery Has Been Operating At 50% Of Its Capacity Since Q3 Of 2022 To Mitigate Losses
Portfolio Pulse from Benzinga Newsdesk
Alcoa Corporation (NYSE:AA) is engaging with the Spanish government to address financial losses at its San Ciprián complex, which includes an alumina refinery and an aluminum smelter. The refinery has been operating at half capacity since Q3 2022 to reduce losses. The smelter was curtailed in January 2022 but is set for a phased restart in January 2024. Alcoa faces challenges such as uncompetitive energy costs, delayed alternative energy supplies, a European market slowdown, and lower sales prices. Despite investing $65 million in 2023 to meet Viability Agreement terms, Alcoa seeks long-term solutions with government and worker representatives due to unsustainable business conditions.
December 11, 2023 | 1:45 pm
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Alcoa Corporation is facing financial difficulties at its San Ciprián complex in Spain, operating at reduced capacity and seeking government assistance for long-term sustainability.
The news indicates that Alcoa is experiencing significant financial challenges at its San Ciprián complex, which is likely to negatively impact investor sentiment in the short term. The company's acknowledgment of unsustainable business conditions and the need for government relief suggests that without such support, the financial situation may worsen. This could lead to a decrease in stock price as investors may be concerned about the company's profitability and long-term viability in the region.
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