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Following phone call with Alcoa CEO, Sen. Schumer says he is 'optimistic' about company's future in Massena

Posted 3/23/15

Senator Charles E. Schumer says Alcoa CEO Klaus Kleinfeld says Alcoa is committed to keeping the plant in Massena. Following a Monday phone call, Schumer said he was confident the plant has a good …

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Following phone call with Alcoa CEO, Sen. Schumer says he is 'optimistic' about company's future in Massena

Posted

Senator Charles E. Schumer says Alcoa CEO Klaus Kleinfeld says Alcoa is committed to keeping the plant in Massena.

Following a Monday phone call, Schumer said he was confident the plant has a good future and feels optimistic that Massena jobs are well-positioned to withstand market vagaries and the current global cost-cutting at Alcoa.

Alcoa announced earlier in the month that they are reviewing their worldwide operations and it could result in plant closures.

“Schumer said the Alcoa CEO’s assurance that the company is committed to its North Country facility is promising news for local jobs, and the senator vowed to continue monitoring the situation to ensure local employment levels are protected,” Schumer’s office said in a prepared statement.

“I spoke directly with Alcoa CEO Klaus Kleinfeld, and I feel very confident that Alcoa remains deeply committed to its workforce levels and smelting capacity at Massena, despite the down market for aluminum right now and Alcoa’s global reduction of smelting capacity. This is due in large part to the wise investment we forged to provide the plant with a steady supply of clean and affordable power, not to mention a sensible and balanced agreement with EPA regarding the clean-up of the Grasse River,” Schumer said. “Preserving these vital North Country jobs for Alcoa’s world-class workforce is a tippy-top priority of mine, and I will continue to watch this situation like a hawk and stay in touch with the company and with local leaders so that we are doing all we can to help Alcoa thrive in the North Country for a long time to come.”

Alcoa said in a March 6 statement that it is looking at “500,000 metric tons of smelting capacity and 2.8 million metric tons of refining capacity for possible curtailment or divestiture.”

They say 14 percent of Alcoa’s global smelting capacity and 16 percent of its global refining capacity could be affected.

The company says outcomes could include “partial to full plant curtailments, permanent shutdowns or divestitures.”

“Alcoa continues to take decisive action, transforming its upstream portfolio to create a lower cost, globally competitive commodity business,” said Alcoa President Bob Wilt in a press release. “Our goal is to move down the global aluminum cost curve to the 38th percentile and the global alumina cost curve to the 21st percentile by 2016. The results from this review will help achieve those goals. We’ll take action only after a thorough strategic review to determine the best outcome for our shareholders and in consultation with our stakeholders.”

Alcoa recently closed one of its two Massena plants. The so-called east plant, a former Reynolds Metals facility, was shut down in April 2014. Close to 300 jobs were affected by the closure. The remaining Massena plant employs more than 700 people.

In its primary metals business, the Alcoa has curtailed, closed or sold 1.3 million metric tons, or 31 percent, of its highest cost global smelting capacity since 2007, the release said.