Monday, June 14, 2010

Alcoa (NYSE:AA) Suspends Operations at Spanish Smelter

Floods hitting the region housing their aluminum smelter in Aviles, Spain has caused Alcoa (NYSE:AA) to temporarily suspend operations there.

The production capacity at the plant in Aviles stands at 93,000 metric tons a year.

Consequently, Alcoa also declared force majeure, implemented when forces beyond the control of a company occur which keep them from meeting obligations of their customers. This means deliveries and shipments will be delayed until conditions are improved and operations continue.

Alcoa stated they are working with entities in the region, and will release more details once they get a better overall picture of the overall damages and how that will impact the timetable for meeting their obligations to their customers.

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