GFG Ponders Plan to Save San Ciprian Aluminum Smelter

SEATTLE (Scrap Monster): GFG Alliance announced that it is confident in finding a sustainable solution for bringing the Alcoa’s troubled Spanish San Ciprian aluminum smelter. It must be noted that Alcoa has put up the smelter for sale.

According to them, ensuring supply of low-cost energy and alumina is the key for achieving a turnaround in the smelter operations. It must be noted that Alcoa had blamed high energy prices are the key reason for losses reported by the smelter. The high energy costs had prompted the company to sell its other two Spanish smelters in Aviles and La Coruna.

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Jay Hambro, Chief Investment Officer, GFG Alliance stated that the company is currently working with Alcoa in creating a long-term sustainable solution for the San Ciprian smelter. The company plans to make investments that would have a pay-back period of minimum 10 years. It is confident of coming up with a solution, with the willing cooperation and support by the vendor. However, guarantee on raw material supply will need to be added as an essential pre-condition for the talks to proceed further, Hambro added.

GFG subsidiary has been involved in exclusive talks over Aloca’s smelter since August this year. The deadline for a potential agreement between the two parties was recently extended to September 28^th. The Spanish Ministry of Industry has also been part of negotiations.