Alcoa: terminates power contract at Texas smelter.
(CercleFinance.com) - Alcoa, the leading aluminum producer in the US, said that it has ended a complex, long-term power contract tied to a Texas smelter that had been shut down at the end of 2008.
The company said it has terminated the electricity contract with power provider Luminant, which concerned its Rockdale operations, that had been set to expire no later than 2038.
Alcoa said it has made a payment of 237.5 million dollars and transferred approximately 2,200 acres of land and other assets to Luminant.
However, the company now expects an its net income to increase by between 60 million and 70 million dollars as a result of the contract's termination, as from the fourth quarter of this year.
After completing the deal, Alcoa has initiated a strategic review of the remaining buildings and equipment associated with the plant.
A decision is due by the end of 2017.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The company said it has terminated the electricity contract with power provider Luminant, which concerned its Rockdale operations, that had been set to expire no later than 2038.
Alcoa said it has made a payment of 237.5 million dollars and transferred approximately 2,200 acres of land and other assets to Luminant.
However, the company now expects an its net income to increase by between 60 million and 70 million dollars as a result of the contract's termination, as from the fourth quarter of this year.
After completing the deal, Alcoa has initiated a strategic review of the remaining buildings and equipment associated with the plant.
A decision is due by the end of 2017.
Copyright (c) 2017 CercleFinance.com. All rights reserved.