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NEW YORK - Alcoa Corporation (NYSE:AA), the $9.6 billion aluminum producer currently rated GREAT by InvestingPro’s Financial Health Score, announced a new 10-year energy contract with New York Power Authority (NYPA) and plans to invest approximately $60 million in its Massena Operations facility in New York.
The energy agreement, which takes effect April 1, 2026, provides the aluminum smelter with 240 megawatts of renewable energy at competitive prices. The contract includes options for two additional five-year extensions.
Alcoa’s capital investment will fund the rebuilding and modernization of the facility’s anode baking furnace through 2028. The project is supported by a grant of approximately $6 million from Empire State Development (ESD).
"Long-term, competitively priced energy enables Alcoa to proceed with this important investment that will help us meet the demands of today while planning for tomorrow," said Alcoa President and CEO William F. Oplinger in a press release statement.
The Massena Operations facility, which began production in 1902, is described as the world’s longest continuously operating aluminum smelter. With an annual nameplate capacity of 130,000 metric tons, it employs approximately 550 workers including contractors.
According to the company, the facility contributes more than $66 million in direct salaries, wages and benefits annually, and spends $90 million with 1,800 U.S. suppliers in 2024.
Massena Operations is one of only four remaining aluminum smelters in the United States. The investment comes as domestic aluminum production has faced challenges from lower-cost international competition and energy price concerns. Despite industry headwinds, Alcoa’s stock has shown remarkable strength with a nearly 49% gain over the past six months. For deeper insights into Alcoa’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Alcoa Corporation reported a revenue decrease of 10% for the second quarter of 2025, amounting to $3 billion. The company’s net income was $164 million, or $0.62 per share, with adjusted net income at $103 million, or $0.39 per share. Despite generating positive free cash flow and maintaining a strong return on equity, the decline in revenue has raised investor concerns. Additionally, the United States and Australian governments have announced their support for Alcoa’s development of a gallium production facility at its Wagerup alumina refinery in Western Australia. This initiative follows a Joint Development Agreement signed in August 2025 with Japan Australia Gallium Associates Pty Ltd, a joint venture involving the Japanese Government and Sojitz Corporation. These recent developments highlight significant activities within Alcoa, with implications for future production capabilities and financial performance.
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