Jan 25 (Reuters) – The second-largest U.S. aluminum smelter in southeast Missouri won’t require “most staff” after curbing its operations by Jan. 28, in response to a neighborhood information report on Wednesday citing a letter from plant administration.
“Resulting from abnormally chilly climate, our operations have been severely impaired to the purpose the place they can’t be restored whereas working,” the Heartland Information report cited the letter from Magnitude 7 Metals Llc as saying.
The letter added that Magnitude 7 would proceed searching for contemporary capital from potential traders to restart the smelter sooner or later.
The 263,000 tonne-a-year smelter in Missouri’s New Madrid county restarted in mid-2018 after Swiss-based ARG Worldwide AG, led by former Glencore dealer Matt Lucke, purchased it out of chapter from Noranda.
Heartland Information mentioned Lucke refused to touch upon the curtailment determination. ARG Worldwide didn’t instantly reply to a Reuters request for remark.
The plant employs round 450 union employees, and in response to a Reuters assessment of air pollution monitor information for 2019, chemical compounds and soot pouring out of its smokestacks constantly produced the dirtiest air recorded in America.
Industrious Labs, a nonprofit engaged on the power transition, mentioned the principle problem for aluminum vegetation at this time is the excessive price of electrical energy, which makes up round 40% of their complete manufacturing prices.
“The announcement is yet one more blow to the delicate main aluminum business in america and a transparent sign that the Biden Administration should act swiftly to safe renewable reasonably priced power to retain this important materials for America’s economic system,” mentioned Annie Sartor, Aluminum Marketing campaign Director for Industrious Labs.
The US had 23 working vegetation in 1998. It now has 5, together with Magnitude 7, with most of the misplaced smelters dismantled and websites reclaimed.
In March 2023, Alcoa introduced the everlasting closure of its 279,000 tonne-per-year Intalco aluminum smelter in Washington state to organize the positioning for redevelopment.
In June 2022, Century Aluminum idled its Hawesville, Kentucky, smelter after the ability price to function the plant greater than tripled. (Reporting by Deep Vakil in Bengaluru Enhancing by Peter Graff)
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