Alcoa Delays Investment in San Cibrao Amid Financial Challenges

Postponement of Anode Baking Furnace Project

Alcoa has announced the temporary postponement of the final approval for its anode baking furnace project at the San Cibrao aluminum factory in Lugo. This decision is attributed to the company's current complex financial situation.

Factors Contributing to Losses

The company anticipates significant losses in 2024 at its San Cibrao plants. These losses are expected due to multiple factors, including high energy prices, which are critical for production, and fluctuating prices of aluminum and alumina in the international market.

Challenges with Energy Supply Contracts

Alcoa has expressed concerns over the progress of long-term energy supply contracts (PPAs) signed in 2022. The lack of expected developments in these contracts has contributed to the company's decision to delay the investment.

Commitment to Viability and Employees

Despite this setback, Alcoa emphasizes that this decision does not signify a failure to meet its commitments. The company assures continued efforts to fulfill the terms of the viability agreement and remains dedicated to securing the best outcomes for its employees. Alcoa appreciates the factory workers' commitment and professionalism, reiterating its dedication to the plants' viability.