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The Works To Reactivate The Aluminum Plant Will Start Immediately And Alcoa Expects The First Batches Of Production In Maranhão To Occur In The Second Quarter Of 2022
On Monday (09/20), Alcoa announced that it will restart aluminum casting operations at the Alumar plant in São Luís, Maranhão, which have been suspended since 2015. The company will invest R$ 400 million to resume production immediately. The resumption will also involve the creation of 750 new direct jobs, in addition to generating 1,500 indirect jobs in the region. Read also: More Than 100 Jobs Will Be Created By ArcelorMittal With The Reactivation Of A Rolling Mill In A Plant In Minas Gerais
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The Reactivation Of The Plant In São Luís, Maranhão
The process to restart the idle capacity of the aluminum plant will start immediately. The delivery of the first aluminum ingot is expected in the second quarter of 2022 and the total capacity of 268,000 tons per year should be operational by the fourth quarter of 2022. By 2024, Alumar will be supplied with 100% renewable energy.
John Slaven, Executive Vice President and Chief Operating Officer of Alcoa, says that “Our decision to restart is based on an analysis that shows that the reactivation can be competitive across all cycles, leveraging the refinery located on the same site, a strong workforce, and renewable energy structure.” The executive also says that with this planned production resumption, they will be able to leverage the strong capabilities of this location and capture benefits for investors, customers, employees, and partners in the state of Maranhão.
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Investments And Job Creation In Maranhão
Otavio Carvalheira, Vice President of Operations and President of Alcoa in Brazil, said that “We are excited about the work to come to safely and effectively restart the Alumar reduction, and we appreciate the collaboration of the government and the community as we begin this important months-long process to strengthen Alcoa’s leadership and further improve our global competitiveness.”
The restart of the aluminum plant in Maranhão will involve hiring more than 750 employees and will increase the 850 direct employees of the alumina refinery located at the site. The restart cost is estimated at approximately US$ 75 million (R$ 400 million). The restart expenses anticipated for the fourth quarter of 2021 are estimated to be between US$ 15 million and US$ 20 million before taxes. With this planned resumption, Alcoa will have approximately 80% of its 2.99 million metric tons of global aluminum reduction capacity operating.
Check Out This News: To Expand Production Capacity, Gerdau Will Invest US$ 500 Million In The Plant In The State Of Minas Gerais
Gustavo Werneck, the CEO of Gerdau, stated in a teleconference that the company will expand the capacity of hot coil rolling and the production of structural profiles at its plant in Ouro Branco, Minas Gerais, with investments totaling US$ 500 million.
“Our hot coil rolling mill is already operating at full capacity…The investment in the plant starts now and is expected to be completed by 2024,” said Gustavo Werneck in a teleconference with journalists about Gerdau’s record results in the second quarter. The timeline for the rolling mill matches that of the structural profiles equipment, which produces steel beams for civil construction. The capacity of the hot coil rolling mill (BQ) will be 250,000 tons per year, while the profiles machine, a product that Werneck stated Gerdau is the only producer of in Latin America, will be 500,000 tons per year.
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