Alcoa takes control

Alcoa has reached agreement to acquire the minority interests in its Intalco and Eastalco aluminium smelters in Ferndale, Washington and Frederick, Maryland.

Affiliates of Mitsui & Co. Ltd. and YKK Corporation will sell their combined 39 percent stake in the two smelters, which will give Alcoa sole ownership of the two facilities.

Alcoa will receive undisclosed cash consideration to cover liabilities relating to the prior operation of the smelters. The transaction is expected to be completed today.

The Intalco smelter is a 278,000 metric ton per year facility and is operating at approximately one-third its capacity. The 195,000 metric ton per year Eastalco smelter was temporarily idled in December 2005 because it could not secure a competitively priced long-term power arrangement. The company seeking long-term power options that would allow the plant to reopen.

“Any viable long-term option for Intalco must include several key components; among them is the ability to secure long-term, globally competitive power. The long-term future of Intalco hinges on successful negotiation of a cost-based energy contract,” commented Alan Cransberg, President, Global Manufacturing Alcoa Primary Products.