Pittsburgh aluminium pioneer Alcoa Corp said yesterday that it has been unable to come to terms with the labor union at its San Ciprián, Spain aluminium plant, prompting the Spanish government to decide upon the plant’s fate.
Alcoa says Spanish regulators have 15 days to make the decision on the 228 thousand metric ton per annum aluminium smelter. The two parties began discussions with the San Ciprián Works Council in late May to come up with a way forward at the plant that was not operating in the black in recent years. The formal consultation process began a month later. Alcoa notes that the formal process continued beyond statutory time limits.
The aluminium firm said it presented the labor union with a wide range of alternatives, including temporary dismissal into Expediente de Regulación Temporal de Empleo (ERTE) for two years and an offer to sell the plant to another company. However, none of the alternatives were ultimately agreed upon by both parties.
Both alumina refining and aluminium smelting operations are carried out at the San Ciprián site. Alcoa says the changes planned for the aluminium-smelting operation will have no effect upon operations at the alumina refinery.
The San Ciprián aluminium smelter produces ingots, billets, and sheets of primary aluminium.