Alcoa’s partner in Alumina, after the plant’s crisis, is seeing profits. Experts are confident that Alumina Limited (owner of 40% of the San Cibrao plant) will achieve a net profit of around 230 million euros despite halving production at the Spanish plant.
However, despite the current delicate situation, the Australian company, Alcoa’s partner in Alúmina Española and its plant in San Cibrao, sees a future with opportunities for growth in renewable energies while the weather improves at its Galician factory. “It is a key material for photovoltaic generation, electric cars and transmission,” reiterates the 40% owner of Alúmina Española.
Alcoa World Alumina and Chemicals (AWAC), as the joint venture created with Alcoa is known, is, in the opinion of Alumina Limited, “a unique example of low-emission, low-cost refineries”. In this regard, the company stresses that the carbon dioxide emissions required to produce one ton of alumina, which is subsequently transformed into aluminum, has been reduced by 31% since 2015 to 13.1 tons of CO2 per ton of product.
On the one hand, this price increase will mean another chance for Alumina Ltd. to get around the pothole it is going through here in San Cibrao. On the other hand, there is a consensus among analysts that Alumina Australia will close with a net profit of $230 million (approximately 234 million euros at current exchange rates).
This year, Alumina Española has finally been affected by the pressures generated by the energy crisis that have affected the electricity industry. This is proven when natural gas represents 60% of its investments with small changes. However, in order for Alumina Española not to incur in layoffs or reductions in work shifts, the company notified that there will be no layoffs. Since October, the production rate has been 2,200 tons and is within the limits finally announced in July. “But even so, the refinery generates a significant negative margin loss per ton of alumina,” explained Alcoa, which holds 60% of the equity. The multinational has stressed that it continues to monitor the situation to assess whether it will take further action in the coming months.
