Alcoa To Cut Remaining Suralco's Remaining Alumina Capacity

By Tomi KilgoreMarketWatch Pulse

Alcoa Inc. said on Monday it will cut the remaining alumina capacity of its Suralco operations in Suriname, given limited supply of bauxite and continued weakness in commodities markets. Suralco's remaining capacity was 887,000 metric tons a year. Alcoa expects to record restructuring charges of $65 million to $75 million, or 5 cents to 6 cents a share, in the second half of 2015 associated with the capacity cuts. "Suralco's ongoing energy challenges and limited bauxite supply, combined with unfavorable market conditions, mean it is no longer possible to continue operations," said Bob Wilt, president of Alcoa global primary products. Alcoa's stock slipped 0.3% in premarket trade. It has tumbled 20% over the past three months, while the S&P 500 has lost 6.4%.

Copyright © 2015 MarketWatch, Inc.

Continue Reading Below