WARRICK COUNTY, Ind. (WEHT) – Alcoa is selling part of its Warrick County plant. The company announced its plans to sell its rolling mill to Kaiser Aluminum.
Alcoa’s logo is the only one outside the main entrance of their Warrick Operations. But next year, there will be two as two companies will share this one facility in a deal involving hundreds of millions of dollars and hundreds of jobs.
$670 million. That’s how much Alcoa is selling its rolling mill to California-based Kaiser Aluminum.
“We’ve been very impressed with the safe, hardworking, winning attitude of the employees at the Warrick facility and we believe the two organizations will blend well together,” said Keith Harvey, President and C.E.O. of Kaiser Aluminum during Tuesday’s teleconference.
Nearly 1,200 Alcoa workers who work in the rolling mill will continue to work there, but they will become Kaiser employees once the deal is finalized. As part of the $670 million deal, Kaiser will take on $83 million in post retirement worker benefits. Alcoa keeps the smelter and power plant, plus the 660 workers at those parts of the operations.
“One of the great things about the people at Warrick operations is they are very resilient to change. This location has been through a great deal of change over the years, and I fully expect us to come with the most successful outcome working together,” said Evan Quinley, Site Operations Manager for Alcoa.
Alcoa President and C.E.O. Roy Harvey says the deal allows the company to focus on its core markets and make additional money. The company will also have a metal supply deal with Kaiser once the agreement is finalized early next year.
“During that time of transition, we will continue to operate as one Alcoa and we will do everything in power, to ensure that this is a successful transition to set up both companies for success,” said Brad Marrs, Smelter and Power Plant Manager at Alcoa.
We also reached out to officials with the USW Local 104, who have hundreds of members working at Alcoa. They said they want to study the plan closer before commenting on it.
(This story was originally published on December 1, 2020)