Alcoa 2013 Annual Report Download - page 29

7In mid-May 2013, in connection with the announcement of a revised modernization plan schedule for the Baie-Comeau
smelter, Alcoa stated that it would permanently close the plant’s two Soderberg potlines. The closure, which was
completed in August, involved 105,000 mtpy of capacity and was part of the 460,000 mtpy of smelting capacity Alcoa
announced was under review in May 2013.
8Owned through Rio Tinto Alcan Inc.’s interest in Pechiney Reynolds Québec, Inc., which is owned by Rio Tinto Alcan
Inc. and Alcoa.
9In January 2012, as part of a restructuring of Alcoa’s global smelting system, Alcoa announced that it had decided to
curtail operations at the Portovesme smelter during the first half of 2012. In March 2012, Alcoa decided to delay the
curtailment of the Portovesme smelter until the second half of 2012 based on negotiations with the Italian government
and other stakeholders. In the third quarter of 2012, Alcoa began the process of curtailing the Portovesme smelter, and it
has since been fully curtailed as of November 2012 with all 150,000 mtpy idled. This action may lead to the permanent
closure of the Portovesme facility; however, Alcoa will keep the smelter in restart condition through June 2014.
10 In January 2012, Alcoa announced its intention to partially and temporarily curtail its Avilés and La Coruña smelters.
The partial curtailments were completed in the first half of 2012. As a result of a modification to the load interruptibility
regime then in place in the Spanish power market, Alcoa restarted a portion (27,000 mtpy combined for Avilés and La
Coruña) of the capacity previously curtailed in the first half of 2012 in order to meet the requirements of the modified
interruptibility regime. 35,000 mtpy and 27,000 mtpy remain curtailed at Avilés and La Coruña, respectively. See the
Management’s Discussion and Analysis of Financial Condition and Results of Operations section for more information.
11 In August 2013, Alcoa announced the permanent closure of one potline representing 41,000 mtpy at the Massena East
facility. In addition, in January 2014, Alcoa announced the permanent shutdown and demolition of the remaining two
potlines (capacity of 84,000 mtpy) that employ Soderberg technology at the smelter. The two Soderberg potlines will be
fully shut down by the end of the first quarter of 2014.
12 Between June and November 2008, three of Rockdale’s six potlines were idled as a result of uneconomical power prices.
The remaining three operating lines were idled in November 2008 due to uncompetitive power supply and overall
market conditions. In January 2012, Alcoa announced that it will permanently shut down and demolish two of the six
idled potlines as part of a larger strategy to improve its cost position and competitiveness. The remaining four potlines
(191,000 mtpy) remain idled.
13 Approximately half of one potline at the Intalco smelter remains idled, approximately 49,000 mtpy.
14 One potline at the Wenatchee smelter remains idled, or approximately 41,000 mtpy.
As of December 31, 2013, Alcoa had approximately 655,000 mtpy of idle capacity against total Alcoa Consolidated
Capacity of 4,037,000 mtpy.
In June 2013, Alcoa announced its intention to permanently close the Fusina, Italy smelter. The closure is in addition to
the 460,000 mtpy of operating smelting capacity that the company announced was under review in May 2013.
As noted above, Alcoa and Ma’aden have developed an aluminum smelter in the Kingdom of Saudi Arabia. The
smelter is expected to have an initial capacity of ingot, slab and billet of 740,000 mtpy. First hot metal was produced
on December 12, 2012 and the smelter reached production of 190,000 mtpy in 2013. In October 2013, Alcoa
announced that it had halted production on one of two potlines. The temporary shutdown was undertaken after a period
of pot instability. The joint venture is actively working to restore the potline, and it is expected to be completed and
back online between the first and second quarter of 2014. The second potline is operating at capacity. There is no
impact to any other part of the joint venture project.
In 2013, Alcoa and the Brunei Economic Development Board agreed to further extend an existing Memorandum of
Understanding (MOU) to enable more detailed studies into the feasibility of establishing a modern, gas-powered
aluminum smelter in Brunei Darussalam.
In November 2013, following elections in Greenland, the parliament approved changes to framework legislation
affecting large scale projects. The impact of those changes on the economic feasibility of the proposed integrated hydro
system-aluminum smelter now requires evaluation.
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