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

Alcoa plans layoffs at its Spanish smelter in San Ciprian. The aluminium producer is in talk with the local works council to finalise the collective dismissal process. There are also speculations of the smelter’s likely closure. 


San Ciprian smelter has an annual capacity to produce 228,000mt of primary aluminium. The plant’s operations was marred with high energy costs and subdued aluminium prices due to global overcapacity. The Spanish smelter has become inefficient and uncompetitive and has incurred financial losses, according to Alcoa. The company expects further losses in the future. Sant Ciprian site is an integrated aluminium manufacturing plant and alumina refinery. After the restructuring, Alcoa would continue to operate a portion of the cast house, the functioning of alumina refinery will be out of this informal consultation process.   


In April, Alcoa had announced a production cut at its Intalco smelter in Ferndale, Washington as a first step towards closing it down in Q2.


The layoff would affect 534 employees. San Ciprian alumina refinery is a part of Alcoa’s joint venture. Alcoa has 60pc stakes in the same. The refinery has the annual capacity to produce 1.5mn mt of alumina and the facility supplies alumina to several primary smelters in Europe.


Earlier, Alcoa’s Chief Executive officer of Alcoa, Roy Harvey said that the aluminium supply glut would put downward pressure on the prices this year.



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