According to an official statement of Alcoa Inc (NYSE:AA) dated August 25, 2014, the company is planning to shut down one of its large aluminium smelter units. The smelter unit is located in Italy and has an annual smelting capacity of 150,000 tons. After this cut off, Alcoa’s annual global smelting capacity will be reduced to 3.6 million tones.
President of Alcoa Inc (NYSE:AA) Global Primary Products, Bob Wilt, stated that,
“The fundamental reasons that made the Portovesme smelter uncompetitive unfortunately have not changed…, We will continue to meet the commitments made to our employees and our stakeholders, acting in good faith as we have always done.”
According to the statement, this decision has been taken by the consideration of increasing Alcoa Inc (NYSE:AA)’s global competitiveness and reducing the unit costs of production by 2016. It seems that Alcoa will continue to eliminate inefficient plants to reach its target of being at the 38th percentile of world aluminium production cost curve.
Alcoa Inc (NYSE:AA) is one of the leading aluminium productions companies operating worldwide. The company has a market cap of $19.4 billion and dividend yield of 0.7%.