Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Pittsburgh-based aluminum firm Alcoa intends to drop the curtailment operation at its San Ciprian smelter in Spain in line with the verdict by local high court against mass layoffs at the site. 


The company planned a complete layoff at the site and was previously negotiating terms with the worker’s union. However, the worker’s representative filed a law suit against the company with the Galicia high court, in which the judge declared the mass dismissal process “null and void”. This compelled Alcoa to reconsider its curtailment plan. 


While the company reviews the verdict, it indicated that it would restructure operations at the smelter due the persisting structural issues. However, the company will now forego employee-related costs of $35-$40mn that it would have otherwise had to pay. 


Alcoa will account for a $10mn impairment in its Q4 2020 earnings due to the strike at the smelter and alumina refinery. The smelter has an installed annual capacity of 228,000mt. 



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