Company
ALCOA Will Close Its Aluminum Smelting Plant
Posted: 2014-06-23 01:37:10 Hits: 1368
Founded in 1888 in Pittsburgh, Aluminum Company of American (hereafter referred to as Alcoa) is the biggest aluminum producer of the USA. The products of it are mostly applied in aviation, automotive, construction and transportation industries. They are also used for the manufacture of other industrial products and packages.
On June 20, according to the media message, Alcoa announced that it had begun the investment in the State of Indiana. Totally 10 billion dollars will be used to build a plant there to meet constantly increasing demands from the big-size commercial airplane manufacturer. However, completely different from the favorable development in Indiana, its Point Henry factory in Australia is haunted by the possibility of close-down.
Located in the State of Vitoria, Point Henry smelting plant costs the most expensive asset portfolio among all factories of ALCOA. The Chief Executive Officer Klaus Kleinfeld of ALCOA declared that, “In spite of the unceasing efforts of the local operation team, this capital has already lost its competitive power and has no possibility of further financial increase in 2014 and future years.
Together with Point Henry, another two aluminum plate rolling mill plants in Australia. There are almost 980 employees in these three factories. This shows that ALCOA are transferring the business core to the low-cost plant. Due to the growth of Chinese aluminum production capability, companies involved in aluminum production face more and more pressures.
ALCOA is investigating its aluminum smelting business from the strategic aspect. Before this, the company said that it planned to cut down about 460 thousand tons of annual production capability. For now, the factories it announced to close have exceeded this aim. The capability reaches 551 thousand tons yearly, of which Point Henry accounts for 190 thousand tons.
The other cost reduction projects ALCOA has announced including the close-down of factories in Canada, Brazil and America. The close of Point Henry will decrease almost 4.8% production capability of ALCOA.
On June 20, according to the media message, Alcoa announced that it had begun the investment in the State of Indiana. Totally 10 billion dollars will be used to build a plant there to meet constantly increasing demands from the big-size commercial airplane manufacturer. However, completely different from the favorable development in Indiana, its Point Henry factory in Australia is haunted by the possibility of close-down.
Located in the State of Vitoria, Point Henry smelting plant costs the most expensive asset portfolio among all factories of ALCOA. The Chief Executive Officer Klaus Kleinfeld of ALCOA declared that, “In spite of the unceasing efforts of the local operation team, this capital has already lost its competitive power and has no possibility of further financial increase in 2014 and future years.
Together with Point Henry, another two aluminum plate rolling mill plants in Australia. There are almost 980 employees in these three factories. This shows that ALCOA are transferring the business core to the low-cost plant. Due to the growth of Chinese aluminum production capability, companies involved in aluminum production face more and more pressures.
ALCOA is investigating its aluminum smelting business from the strategic aspect. Before this, the company said that it planned to cut down about 460 thousand tons of annual production capability. For now, the factories it announced to close have exceeded this aim. The capability reaches 551 thousand tons yearly, of which Point Henry accounts for 190 thousand tons.
The other cost reduction projects ALCOA has announced including the close-down of factories in Canada, Brazil and America. The close of Point Henry will decrease almost 4.8% production capability of ALCOA.