It will focus on ensuring the stable and sustainable operations of the San Ciprian complex with the approved funding.
SEATTLE (Scrap Monster): In order to guarantee the ongoing functioning of the Alcoa San Ciprian complex, Alcoa Corporation announced that it has established a joint venture agreement with IGNIS Equity Holdings, SL, a company based in Spain. On March 31, 2025, the new joint venture will go into effect.
According to the terms of the transaction, IGNIS EQT will own the remaining 25% interest, while Alcoa will control 75% and remain the managing operator. To establish the joint venture and finance its operations, Alcoa and IGNIS EQT each invested €75 million and €25 million. Alcoa will also contribute up to €100 million if necessary.
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In keeping with the agreement made between the workers and the smelter in 2021, when smelting operations were halted owing to rising energy prices, the deal calls for the San Ciprian smelter to be restarted in 2025. With the authorized cash, it will concentrate on making sure the San Ciprian complex operates steadily and sustainably.
The San Ciprian smelter reported a negative cash from operations of about $60 million and a net loss of about $50 million in 2024. It projects that the smelter will report a net loss of between $80 million and $100 million this year, based on current pricing.
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