Alcoa to Permanently Shut Wenatchee Works Aluminum Smelter

SEATTLE (Scrap Monster): Alcoa Corporation announced its decision to close around 146,000 metric tons of aluminum smelting capacity at the Wenatchee Works aluminum smelter in Washington State. The smelter has been completely idle since 2015. The work towards permanent decommissioning of the smelter will commence soon. The Wenatchee smelter site will be prepared for potential redevelopment.

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In connection with the permanent closure, the company will record restructuring and related charges of approximately $75 million in Q4 this year. The cash outlays in connection with the closure are projected at around $60 million over the next seven years. Out of this, around $2 million will be spent next year. The projected cash outlays are excluding any potential proceeds from the planned redevelopment efforts, said the company press release. 

Commenting on the decision, Roy Harvey, President and CEO, Alcoa said that the analysis carried out by the company is not in support of the long-term operation of the Wenatchee smelter. Consequently, it has decided to focus on preparing the site for a new future. He thanked community stakeholders for all their support over the past several years. Alcoa looks forward to continued cooperation in developing a robust redevelopment and reuse plan for the site, he added.