Alcoa Inc. said Tuesday it is permanently closing its Pocos de Caldas aluminum smelter in Brazil, which has been curtailed since May 2014. The move, which comes as the market conditions that led to the curtailment have not improved, "permanently removes a high-cost smelting facility from the Alcoa system and is another step in creating a more profitable primary metals business," Alcoa Global Primary Products President Bob Wilt said in a statement. The company expects to book a restructuring charge of $100 million to $110 million in the second quarter, equal to 8 cents to 9 cents a share, 60% of which will be non-cash. The company's global smelting capacity will be reduced by 96,000 metric tons after the closure, to 3.4 million metric tons. Shares were up 0.8% in premarket trade, but have shed 28% in the year so far, while the S&P 500 has lost 0.2%.
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