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Released October 05, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Beset by low prices amid a global oversupply, aluminum smelters have gone through a painful period of cutbacks and closures. Even so, downstream aluminum-related projects in the U.S. continue to start up, especially those tied to aluminum sheet and extrusion products. Industrial Info is tracking 11 active U.S. aluminum production projects worth $2.48 billion that are slated for kickoff in fourth-quarter 2015. However, all but $80 million of that amount is tied to one grassroot, flat-rolled aluminum minimill.
Having previously signaled its intent to curtail 100% of its operations at its smelter in Hawesville, Kentucky, Century Aluminum Company (NASDAQ:CENX) (Chicago, Illinois) now plans to leave the plant partially open at 40% capacity. Century Aluminum said it would operate only two potlines at its 244,000-ton-per-year Hawesville facility beginning October 24, with a focus on production of high-purity material. It warned employees the two-potline operation would be curtailed if certain high-purity production levels are not achieved, or if market conditions worsened.
Century Aluminum Chief Executive Officer Michael Bless said: "Hawesville's ability to produce high-purity aluminum enables the smelter to produce a unique product that will hopefully allow the plant to survive, albeit at significantly reduced production levels, in today's market conditions," adding the plant "cannot compete against the improper export of unfairly-subsidized Chinese aluminum products. The continued expansion of Chinese aluminum capacity coupled with the significant increase in unfairly-subsidized Chinese aluminum exports has caused the collapse in industry pricing and put this excellent plant in jeopardy."
In July, Century Aluminum announced the permanent closure of its 170,000-ton-per-year smelter in Ravenswood, West Virginia. The facility had been idled since 2009, and the company said it had been unable to secure a favorable power contract for the facility.
Industry giant Alcoa (NYSE:AA) (New York, New York), which announced plans this week to split into an upstream mining company and a value-added product and services firm, noted that since 2007 it has closed, divested or curtailed 1.4 million metric tonnes, or 33%, of its total smelting operation capacity. Even so, global aluminum demand is expected to grow 6.5% in 2015 and double between 2010 and 2020, according to Alcoa. For related information, see September 28, 2015, article - Alcoa CEO: Company Split to Create Separate 'Value Engines'.
Meanwhile, downstream U.S. aluminum projects with fourth-quarter kickoffs include Revolution Aluminum LLC's (Pineville, Louisiana) $2.4 billion construction of a flat-rolled aluminum minimill in Pineville, Louisiana. The multi-phase project involves building a 1.4 million-square-foot mill to supply aluminum to the automotive industry. W.G. Yates & Sons Construction Company (Birmingham, Alabama) is performing engineering, procurement and construction (EPC) services. For more details on the project, see Industrial Info's project report.
Other fourth-quarter 2015 aluminum-related kickoffs include:
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Having previously signaled its intent to curtail 100% of its operations at its smelter in Hawesville, Kentucky, Century Aluminum Company (NASDAQ:CENX) (Chicago, Illinois) now plans to leave the plant partially open at 40% capacity. Century Aluminum said it would operate only two potlines at its 244,000-ton-per-year Hawesville facility beginning October 24, with a focus on production of high-purity material. It warned employees the two-potline operation would be curtailed if certain high-purity production levels are not achieved, or if market conditions worsened.
Century Aluminum Chief Executive Officer Michael Bless said: "Hawesville's ability to produce high-purity aluminum enables the smelter to produce a unique product that will hopefully allow the plant to survive, albeit at significantly reduced production levels, in today's market conditions," adding the plant "cannot compete against the improper export of unfairly-subsidized Chinese aluminum products. The continued expansion of Chinese aluminum capacity coupled with the significant increase in unfairly-subsidized Chinese aluminum exports has caused the collapse in industry pricing and put this excellent plant in jeopardy."
In July, Century Aluminum announced the permanent closure of its 170,000-ton-per-year smelter in Ravenswood, West Virginia. The facility had been idled since 2009, and the company said it had been unable to secure a favorable power contract for the facility.
Industry giant Alcoa (NYSE:AA) (New York, New York), which announced plans this week to split into an upstream mining company and a value-added product and services firm, noted that since 2007 it has closed, divested or curtailed 1.4 million metric tonnes, or 33%, of its total smelting operation capacity. Even so, global aluminum demand is expected to grow 6.5% in 2015 and double between 2010 and 2020, according to Alcoa. For related information, see September 28, 2015, article - Alcoa CEO: Company Split to Create Separate 'Value Engines'.
Meanwhile, downstream U.S. aluminum projects with fourth-quarter kickoffs include Revolution Aluminum LLC's (Pineville, Louisiana) $2.4 billion construction of a flat-rolled aluminum minimill in Pineville, Louisiana. The multi-phase project involves building a 1.4 million-square-foot mill to supply aluminum to the automotive industry. W.G. Yates & Sons Construction Company (Birmingham, Alabama) is performing engineering, procurement and construction (EPC) services. For more details on the project, see Industrial Info's project report.
Other fourth-quarter 2015 aluminum-related kickoffs include:
- $35 million: Constellium France's Aluminum Sheet and Plate Pusher Furnace Addition in Ravenswood, West Virginia
For more details on the project, see Industrial Info's project report. - $25 Million: Kaiser Aluminum Engineered Products' Aluminum Extrusion Expansion & Equipment Addition/Upgrades in Sherman, Texas
For more details on the project, see Industrial Info's project report. - $6 Million: Alcoa's Aluminum Sheet & Tubes Casthouse Restart in Texarkana, Texas
For more details on the project, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
