Saturday, February 6, 2010

Alcoa (NYSE:AA) Delays Aluminum Smelter Shutdown in Italy


With $300 million at stake, Alcoa (NYSE:AA) has temporarily held back on temporarily shutting down two aluminum smelters in Italy, saying they "are continuing to analyze and continuing to talk."

Energy costs had soared at the plant and the European Commission ordered the company to pay back $300 million in state energy subsidies, which Italy had given it since 2006.

With aluminum prices plunging, Alcoa is losing money every month at the Italian sites, along with the surprise thrown at them by the European Commission that they must pay the $300 million back, something the company says would be devastating to them.

Originally scheduled to shut down on February 6, interested parties agreed to extend it until February 11 when a meeting will be scheduled between Italian government, Alcoa executives and Italian trade unions.


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