Alcoa Ponders Layoffs at Spanish Aluminum Plant

SEATTLE (Scrap Monster): Alcoa Corporation announced that it plans to lay off nearly 534 workers at its San Ciprian aluminum plant in Galicia region, Spain. A final decision is yet to be made. The plant has been facing pertinent losses due to high energy costs and low aluminum prices.

The company plans to begin a formal process for the collective dismissal of employees at the plant on 25^th June, 2020. Earlier in end-May this year, the company had launched an informal process with labor representatives, highlighting the unsustainable circumstances at the plant. It now plans to carry out a month-long consultation period with the Works Council in order to arrive at the best possible outcome.

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According to the company press release, the operations of the San Ciprián alumina refinery at the site will be unaffected. The aluminum plant will be restructured. A portion of the casthouse will be retained in operation.

Meantime, the union representatives blasted the company’s actions and accused the country’s government for failing to provide necessary support to the highly energy-intensive aluminum manufacturing industry. The company’s decision is mainly due to government’s failure to establish competitive electricity prices, they said.