Giant aluminum producer Alcoa (NYSE:AA) has completed a deal with Italian trade unions worth $118 million, which means they'll have to keep the two plants they're investing in open.
Terms of the deal are Alcoa will keep the two smelters, located at Portovesme and Fusina, open. Agreement was made that the Fusina plant will be temporarily halted.
The shutdown of the Portovesme comes from the poor supply of electricity, which will be improved upon before the plant is reopened.
This will help the company cut electrical costs, which have been a problem for the plant to compete. They will receive $74.50 million to upgrade the plant.
Their Fusina plant will have 34.6 million euros invested in it, where improvement of the electricity supply is improved as well, particularly in their primary aluminum segment.
Alcoa was going to shut the plants down before the agreement, citing the required approval of the EU and improved energy prices which would make the plants competitive.
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