Alcoa to Restart Smelting Operations in Newburgh

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

Pennsylvania-based Alcoa Corp. (NYSE: AA) has announced plans to restart three idled lines at its aluminum smelting facility in Newburgh. The Indiana Economic Development Corp. says the company will invest up to $35 million to restart the lines, which were closed last year, by the second quarter of 2018. The company plans to add 275 employees, some of whom will be recalled from layoff status.

The restarted lines will support Alcoa's existing rolling mill at the Warrick County plant. The facility produces flat-rolled aluminum for the food and beverage industry in North America. Work to restart the lines has already begun and the company says, once operational, the lines will have an annual smelting capacity of 161,400 metric tons.

"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," Tim Reyes, president of Alcoa’s aluminum business unit, said in a news release. "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."

When the closure of the smelting operations were announced in January 2016, the company said about 600 workers would be affected by the move. Most of the jobs were cut indefinitely as of April 2016. The company attributed the decision to falling aluminum prices on the global market. 

The majority of the new jobs created by the announcement will be high-wage positions, expected to pay an average wage 45 percent higher than the state average. The IEDC has offered the company up to $2.4 million in conditional, performance-based tax credits and up to $100,000 in training grants.

In 2015, Alcoa announced a split into two independent companies. The southeast Indiana operations are part of the “upstream” business, which includes five business units: Bauxite, Alumina, Aluminum, Casting and Energy. Arconic (NYSE: ARNC), the other independent spin-off, includes Forgings and Extrusions operations in Lafayette, which completed an expansion in 2014, and the high-profile Power and Propulsion facilities in La Porte.

  • Perspectives

    • Creating the Work Spaces that Draw Talent to Indianapolis

      The future economy will be driven by data, powered by robotics and heavily invested in the building blocks of nature – biotech and genetic engineering. That’s true of the economy nationwide, and it’s especially true here in Indianapolis, where dominant pharmaceutical and biotech companies are putting us at the cutting edge of the science-based economy. It all sounds larger than life. But the facilities that will house these industries will always be...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • The Honda Greensburg plant opened in 2008.

      Honda to Invest $4M, Add Jobs at Greensburg Plant

      The American Honda Motor Co. continues to invest in its Greensburg, Indiana plant as it has announced the factory will be producing the company’s first electrified sport utility vehicle in the U.S. The company says it will invest more than $4 million and add 34 new jobs in the plant to support production of the CR-V Hybrid.  

    • Amanda Stephenson is the founder and president of Expert RN|MD. (Inside INdiana Business Photo/Mary-Rachel Redman)

      Medical Consulting Firm Opens Downtown Indy HQ

      A medical consulting startup is celebrating the grand opening of its new downtown Indianapolis headquarters. The Indiana Economic Development Corp. says Expert RN|MD, which provides medical consultation services to law firms and life science companies, is investing $1.7 million in the new location and plans to create up to 21 jobs by the end of 2023. The firm was founded in 2018 and recently renovated the 4,000-square-foot space in the downtown's Wholesale District. In an interview...

    • Allison and Stanley Chen provided the lead gift for the campaign. (Provided Photo/ISI)

      International School Launches Capital Campaign

      The International School of Indiana has publicly launched a capital campaign to establish a unified campus in Indianapolis. As part of the ONE ISI campaign, the school is looking to raise $6.5 million to build a new school building for pre-elementary and elementary students at the site of its middle and high schools. The public launch follows a 10-month silent phase of the campaign, during which ISI raised $5 million from more than two dozen donors. Currently, ISI's operations are...

    • Rendering courtesy of the city of Fort Wayne

      Mayor Henry Announces Developer for $70M Project

      Fort Wayne Mayor Tom Henry has named Indianapolis-based Barrett & Stokely the developer for a $70 million project on the city's riverfront near Promenade Park. The company was selected from a group of five firms that submitted requests for proposals to spearhead the project.

    • Money magazine judges Fishers as 3rd best place to live in the U.S.

      Fishers Makes Top 10 List of 'Best Places to Live'

      Three communities in Indiana made the top 100 list of best places to live in the country, but only one made the top 10. Fishers was judged by Money magazine as the third best place to live in the United States, behind Clarksville, Tennessee and Round Rock, Texas.