Alcoa closes Intalco’s aluminum smelter in Washington, D.C.
The multinational Alcoa Corporation announced the closure of its Intalco aluminum smelter in Washington state, which has been completely idle since 2020.Following the announcement of the closure begins a process to prepare the site for new economic development opportunities.
Roy Harvey, president and CEO of Alcoa, said that other possibilities had been evaluated for the Intalco smelter site, which was operational for 55 years. “Our analysis, however, indicates that the facility cannot be competitive in the long term. The site is an important part of our history, and we are encouraged by the prospects for potential economic development through another entity that will own and control the land at the site,” to which Harvey added that “we will continue to collaborate with our stakeholders, including community members and government officials, as we make this transition.”
According to AltaGas, the company has acquired the rights to develop a 1,600-acre area located in Intalco, which is equipped with transportation equipment and relevant utility connections.
“AltaGas is currently exploring a potential development that would align with the climate ambitions of Washington state and Whatcom County and provide long-term sustainable benefits to the community and local economy,” said Randy Toone, president of Midstream at AltaGas. “We understand the rich legacy and importance of this site to the community. We look forward to working with local stakeholders, Tribes and Alcoa to ensure that the potential development benefits the region and contributes positively to the ongoing energy transition.”
The permanent closure of Intalco’s 279,000 metric tons of annual capacity will bring Alcoa Corporation’s global consolidated capacity to 2.69 million metric tons, including 399,000 metric tons combined at two other smelters in the United States.
Alcoa announced that it planned to incur restructuring and other charges related to the permanent closure during the first quarter of 2023. A cash outlay equivalent to $120 million before taxes, or $0.67 per share, is expected. This investment is to be capped with an estimated expenditure of US$85 million over the next three years, corresponding mainly to 2023.
Intalco’s smelter shut down production completely in the third quarter of 2020, amid declining market conditions and high input costs. The smelter, which began operating in 1966, lacked access to competitively priced power and would have required significant capital expenditures to restart.
The plant currently has 19 employees. Some will continue to work at the aforementioned facility to assist with closure-related activities to develop new opportunities for future redevelopment.
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