Alcoa Sells South Carolina Aluminum Smelter to Century Aluminum

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Alcoa today has reached an agreement to sell its ownership stake in the Mt. Holly aluminum smelter in Goose Creek, S.C., to Century Aluminum Company for $67.5 million in cash, plus an additional potential earn-out. Mt. Holly was owned 50.3% by Alcoa and 49.7% by Century before the sale agreement was reached.

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“While Mt. Holly is a strong facility, its cost structure doesn’t match Alcoa’s criteria for a low cost portfolio of upstream assets,” Bob Wilt, president of Alcoa Global Primary Products, said in a statement. “The sale will help achieve Alcoa’s strategy to optimize its commodity portfolio, and protect the facility’s jobs and economic contribution to the local community. We would like to thank our community stakeholders and the employees of Mt. Holly for their years of support.”

The smelter has the capacity to produce 229,000 metric tons of aluminum annually and employs 500 people who will transition to Century as part of the sale.

With a 1.6% increase over the past day, the Indian aluminum cash price was the biggest mover, closing at INR 123.50 ($2.01) per kilogram on Friday, October 24. The 3-month price of aluminum closed at $1,986 per metric ton. Following a couple days of improvement, prices fell by 0.5% on the LME. Declining prices continue for the primary aluminum cash price on the LME. It closed at $1,984 per metric ton only after falling further, this time by.

While Mt. Holly is a strong facility, its cost structure doesn’t match Alcoa’s criteria for a low cost portfolio of upstream assets,” said Bob Wilt, President, Alcoa Global Primary Products. “The sale will help achieve Alcoa’s strategy to optimize its commodity portfolio, and protect the facility’s jobs and economic contribution to the local community. We would like to thank our community stakeholders and the employees of Mt. Holly for their years of support.”

The smelter has the capacity to produce 229,000 metric tons of aluminum annually and employs 500 people who will transition to Century as part of the sale.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap was unchanged at CNY 12,250 ($1,995) per metric ton. The price of Chinese aluminum billet saw essentially no change for the fifth day in a row, remaining around CNY 13,590 ($2,213) per metric ton. For the fifth day in a row, the price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,312) per metric ton. The cash price of Chinese aluminum continues hovering around CNY 13,960 ($2,273) per metric ton for the fifth day in a row.

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