Alcoa Cutting Hundreds of Jobs

Posted: Updated:
Alcoa's Warrick Operations facility covers 9,000 acres. Alcoa's Warrick Operations facility covers 9,000 acres.
WARRICK COUNTY -

Alcoa (NYSE: AA) announced Thursday it will permanently close its smelter operations in Warrick County by the end of March. Our partners at WTVW-TV in Evansville report the closure will result in the loss of about 600 jobs, around one-third of the company's local work force.

The 269,000 metric ton smelter is part of Alcoa's Warrick Operations. While the smelter is closing, Alcoa says the rolling mill and power plant at Warrick Operations will continue to operate.

The company said the decision was made due to a drop in aluminum prices. It says prices dropped approximately 30 percent in 2015 with the Alumina Price Index falling about 40 percent.

"We recognize how deeply this decision impacts employees and we are committed to work closely with our employees, unions and community stakeholders to support them through this transition," said Roy Harvey, president of Alcoa’s global primary products. "Despite the hard work of employees, these assets are not competitive. We’re confident that these actions are the right ones in face of these challenging market conditions. We are committed to creating a resilient business ready for launch as an independent company in 2016."

In October, the company opened up a $100 million aerospace facility in LaPorte, which is expected to create nearly 330 jobs. The company also has a location in Lafayette.

Alcoa will also shut down its remaining 810,000 metric tons of refining capacity at its Point Comfort operations in Texas by the end of second quarter 2016.

  • Perspectives

    • Want A Guaranteed Negative Return?

      Here we go again! On Wednesday, August 14th, we watched the Dow Jones Industrial Average (DJIA) drop over 800 points.  The previous Monday the Dow ended down over 700 points. But what you may have missed is the sharp downward move in interest rates that has intensified with the recent stock market volatility. What does this mean for your portfolio?

    More

Events



  • Most Popular Stories

    • (photo courtesy The Times of Northwest Indiana)

      Hammond Pulls 135 Jobs from Illinois

      A Hammond factory recently vacated by Michigan-based Lear Corp. didn’t sit empty for very long. Midland Metal Products has taken over the former seat factory, having relocated from Chicago after 95 years. 

    • (photo courtesy of TriCore Logic)

      Fort Wayne IT Firm Expanding

      TriCore Logic has announced plans to expand its office space and staff at its downtown Fort Wayne headquarters. The company plans to invest over $200,000 in the expansions. The 2010-founded company moved to the Anthony Wayne building in 2013, and now plan to grow their staff of five employees by up to eight over the next four years. 

    • ‘Transformation’ Continues in Westfield

      Indiana’s fastest growing city is showing no signs of slowing down.  Mayor Andy Cook says now that Westfield has established itself as a destination for family sports with the Grand Park Sports Campus, the $35 million Grand Junction Plaza will transform the city’s downtown into a destination, a place “where people want to be.”   Cook says the project, more than a decade in the making, is an example of a place making strategy necessary for Midwest...
    • (courtesy Wes Mills)

      Purdue: Farmland Values Decline Fifth Straight Year

      The value of top-quality farmland in Indiana has declined continuing a five-year trend, according to the latest data from Purdue University.  The statewide average of the best cropland is $8,212 per acre, down more than five percent, or $456 per acre, from the same period last year. Purdue’s survey shows average and poor-quality farmland values also dropped, but not as much. Average quality farmland declined by 0.9 percent. Purdue says the poor...

    • (Image courtesy of Horseshoe Casino Hammond.)

      Indiana Casinos to Begin Sports Betting

      A pair of northwest Indiana casinos will soon add sports wagering to their offerings. Horseshoe Hammond Casino and Ameristar Casino East Chicago are both set to open sports betting areas at their respective casinos ahead of the kickoff to the 2019 NFL season.