Alcoa Plans Partial Restart of Aluminum Smelter at Warrick Operations

Alcoa Corporation has announced plans to restart three of five potlines at its Warrick Operations aluminum smelter.

“With its decision to restart operations in Indiana, Alcoa is showcasing the value that this facility and Indiana’s manufacturing expertise provide to its global operations,” Governor Eric J. Holcomb said. “In Indiana we’re witnessing incredible momentum as manufacturers continue to choose Indiana for growth, and we’re pleased that Alcoa once again chose Indiana.”

The Pittsburgh-based company will invest up to $35 million to restart the three lines supporting Alcoa’s existing rolling mill at the facility, which produces flat-rolled aluminum for the food and beverage market in North America.

The lines were previously shut down in March 2016.

Plans are to have them fully operational by the second quarter of 2018.

The restarted lines will have an annual smelting capacity of 161,400 metric tons.

With the restart, the company plans to grow its current workforce of 1,250 associates by adding an additional 275 new jobs, including those who will be hired or recalled from layoff status.

This includes an anticipated 196 new high-wage jobs for Indiana residents.

These new positions are expected to pay an average wage that is more than 45% higher than the state average.

“By restarting a portion of the Warrick smelter, we will provide an efficient source of metal for the co-located rolling mill and help it meet an anticipated increase in production volumes,” said Tim Reyes, president of Alcoa’s aluminum business unit. “The action will enable us to more fully utilize the assets at this integrated site for the benefit of our investors, customers, employees and the community.”

The Indiana Economic Development Corporation offered Alcoa up to $2.4 million in conditional tax credits and up to $100,000 in training grants based on the company’s plans to add 196 new full-time jobs for Indiana residents.

These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives.

"We are pleased that Alcoa is reopening their smelter in Warrick County," said Marlin Weisheit, president of the Warrick County Commissioners. "Warrick County has historically supported Alcoa in their efforts. Alcoa and its people have been excellent contributors to our community, and we are pleased they are strengthening their position in their marketplace"

(This story was originally published on July 12, 2017)


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