Alcoa Announces Intention to Restart Aluminum Smelting in San Cibrao

October 16, 2023

Resumption of Operations

Alcoa has disclosed plans to recommence operations at its aluminum smelter in San Cibrao, located in Cervo, Lugo, by mid-November. This announcement follows a sudden halt in production on October 2 due to deteriorating order volumes and market conditions.

José Antonio Zan, president of the works council, relayed this development after a discussion with Alcoa's leadership. He emphasized the ongoing negotiations with clients to sustain contracts and preserve future orders, underscored by a recent visit from a significant customer to the facility.

Communication Breakdown Criticized

Zan expressed criticism of Alcoa’s abrupt communication regarding the suspension, suggesting it caused unnecessary distress among employees and the broader Mariña Lucense community. A commitment was made by Alcoa to enhance its communication strategies with employee representatives moving forward.

The company defended its decision for an immediate halt, citing the unpredictability in October's market landscape. It refuted claims of violating the late 2021 agreement, reaffirming its commitment to maintaining employment levels and continuing planned investments.

Looking Toward Stability

Union representatives conveyed discontent with Alcoa’s hasty decision-making and the lack of prior communication. Zan stressed the need for stability to reassure clients and rebuild the order book, ultimately aiming to restore full operational capacity at the smelter.

Alcoa initially justified the suspension by highlighting depleted inventory, soaring energy costs, and a decrease in customer orders. Despite this, the firm has assured that the production adjustment will not affect employment, ongoing maintenance, or future investments at the plant.

Upcoming Discussions

In light of these developments, a government-mediated meeting to review the agreement is scheduled for October 17. Consequently, the workers' assembly intended for the same date has been deferred to October 20. This assembly will focus on deliberating potential measures in response to the current suspension of the smelting operations.

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