Analyst Summary: Alcoa Corporation (NYSE: AA) has announced the permanent closure of its Intalco aluminum smelter in Washington State, which has been fully idle since 2020. The closure is due to declining market conditions and high input costs, and the site will be prepared for new economic development opportunities. As part of this, AltaGas (TSX: ALA) has acquired the rights to develop and own approximately 1,600 acres at the Intalco site, which includes transportation and utility infrastructure. Alcoa will record restructuring and related charges in the first quarter of 2023 of approximately $120 million (pre- and after-tax), or $0.67 per share, related to the permanent closure.
In a statement, Alcoa President and CEO Roy Harvey said that the facility cannot be competitive for the long-term and that the company will continue to engage with stakeholders as it makes this transition. Randy Toone, President Midstream at AltaGas, stated that AltaGas is currently exploring potential development that would align with Washington state and Whatcom County's climate ambitions and provide long-term, sustainable benefits to the community and the local economy.
Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained, and actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.