Yesterday Pittsburgh aluminium pioneer Alcoa Corporation announced that it has come to an agreement with Swiss private equity firm PARTER Capital Group AG to purchase Spain’s Alcoa Avilés and La Coruña aluminium smelters.
The two Spanish plants, which include casthouses and a paste plant at La Coruña as well as two curtailed smelters, have been the subject of negotiations between PARTER, the plant’s labor force, and Alcoa for several months. Alcoa and the site’s labor force reached an agreement early this year to curtail the plant in February but maintain the potlines in a restart condition as part of the collective dismissal process announced last October.
Though no financial details were revealed in the press release, Alcoa said the sale of the 124 thousand metric tons per annum plants is subject to a buyer-provided credit facility that would aid the plant in future operations. The parties extended the deal’s previous deadline of June 30 to July 31, with the collective dismissal and social plan to take effect on August 1 should the deal fall through.
Per the firm, restructuring-related charges will be reflected in third-quarter numbers, rather than in the second quarter as originally envisioned. Costs are expected to range from US$100 million to US$140 million (pre- and post-tax) depending upon whether the sale is accomplished or the plant’s labor force is collectively dismissed. In addition, Alcoa expects another US$100 million to US$130 million in related cash outlays, half of which are expected to be paid in the current year.