PERTH - Alcoa (NYSE:AA) Corporation has announced it will begin the phased closure of its Kwinana Alumina (OTC:AWCMY) Refinery in the second quarter of 2024, citing outdated infrastructure and challenging market conditions as the primary reasons for the decision. The move comes after the company reported a net loss of $130 million in the previous year.
The closure will see a significant reduction in the workforce at the Kwinana facility. Approximately 800 employees are expected to be impacted, with the number being reduced to around fifty by the third quarter of the following year. Despite the cessation of production at the Kwinana site, Alcoa has confirmed that the port operations will remain active to support other Alcoa refineries in the region.
The company is preparing for the financial impact of the restructuring, with estimated costs projected to be between $180 million and $200 million.
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