Alcoa Signs Deal on Sale of Avilés and La Coruña Aluminum Plants

SEATTLE (Scrap Monster): Alcoa Corporation- the global leader in bauxite, alumina and aluminum products announced that it has reached a conditional share purchase agreement with Switzerland-based private equity firm PARTER Capital Group AG on acquisition of Alcoa’s Spanish plants.

The deal covers Alcoa Avilés and La Coruña aluminum plants comprising of casthouses at both facilities, the paste plant at La Coruña plant and two curtailed smelters. The combined operating capacity of the smelters is estimated at around 124,000 metric tons per annum.

According to company press release, the agreement has already received ratification from the workers’ representatives. The final acquisition is subject to announcement of credit facility by the buyer to support the future operations of the acquired facilities. The deadline for the acquisition has been extended from 30^th June to 31^st July this year. After this deadline, the collective dismissal and social plan will go into effect.

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Alcoa had announced collective dismissal process at both the above Spanish plants in October last year. Further to this, the company had reached an agreement with the workers’ representatives in early-January this year. Accordingly, the operations of smelters at the plants were curtailed in February. Since then, they are being maintained in restart condition, keeping them ready for third party acquisition.

The company thanked the central government as well as the governments of Asturias and Galicia and workers’ representatives for their strong support throughout the process.