NEW YORK CITY (dpa-AFX) - Alcoa (AA) announced it will permanently close the company's Poços de Caldas primary aluminum smelter in Brazil on June 30, 2015. The company said the smelter has been curtailed since May 2014 and the underlying market conditions that led to the curtailment have not improved.
Alcoa said the closure of the smelter permanently removes a high-cost smelting facility from the Alcoa system and is another step in creating a more profitable Primary Metals business.
As a result of the closure, Alcoa expects to record restructuring-related charges in second quarter 2015 between $100 million and $110 million after-tax, or $0.08 to $0.09 per share, of which approximately 60 percent is non-cash. Once the smelter is closed, Alcoa's total global smelting capacity will be reduced by 96,000 metric tons, to 3.4 million metric tons.
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