Alcoa Restarting Aluminum Smelting Operations in Indiana

Alcoa Restarting Aluminum Smelting Operations in Indiana

Alcoa Corporation (NYSE: AA) announced plans to restart three idled lines at its aluminum smelting facility in southwest Indiana, affirming its commitment to manufacturing in Indiana.

“With its decision to restart operations in Indiana, Alcoa is showcasing the value that this facility and Indiana’s manufacturing expertise provide to its global operations,” Governor Eric J. Holcomb said. “In Indiana we’re witnessing incredible momentum as manufacturers continue to choose Indiana for growth, and we’re pleased that Alcoa once again chose Indiana.”

The Pittsburgh-based company will invest between $30 and $35 million to restart the three lines supporting Alcoa’s existing rolling mill at the facility, which produces flat-rolled aluminum for the food and beverage market in North America. Alcoa is currently in the process of restarting the lines, which were previously shut down in March 2016, and plans to have them fully operational by the second quarter of 2018. Once operational, the lines will have an annual smelting capacity of 161,400 metric tons.

With the restart, the company plans to grow its current workforce of 1,250 associates by adding an additional 275 new jobs, including those who will be hired or recalled from layoff status. This includes an anticipated 196 new high-wage jobs for Indiana residents. These new positions are expected to pay an average wage that is more than 45 percent higher than the state average.

“By restarting a portion of the Warrick smelter, we will provide an efficient source of metal for the co-located rolling mill and help it meet an anticipated increase in production volumes,” said Tim Reyes, president of Alcoa’s aluminum business unit. “The action will enable us to more fully utilize the assets at this integrated site for the benefit of our investors, customers, employees and the community.”

The Indiana Economic Development Corporation offered Alcoa up to $2.4 million in conditional tax credits and up to $100,000 in training grants based on the company’s plans to add 196 new full-time jobs for Indiana residents. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives.

“We are pleased that Alcoa is reopening their smelter in Warrick County,” said Marlin Weisheit, president of the Warrick County Commissioners. “Warrick County has historically supported Alcoa in their efforts. Alcoa and its people have been excellent contributors to our community, and we are pleased they are strengthening their position in their marketplace”

The news comes as Indiana’s unemployment rate stands at 3.2 percent, which is below the national rate and below the unemployment rate of all neighboring states. This low unemployment rate is supported by Indiana’s strong manufacturing industry, which is the second fastest growing in the nation. Today Indiana is home to the nation’s highest concentration of manufacturing jobs, with one in five Hoosiers employed in the industry.

Category Business Buzz