Alcoa May Mothball Production Capacity

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

America's aluminum manufacturing capacity could be set to take a big hit.

On Wednesday, aluminum giant Alcoa (NYSE: AA  ) announced plans to review 460,000 metric tons of smelting capacity over the next 15 months, with an eye to "possible curtailment" of its production. Older, higher-cost plants will receive special attention "due to factors such as energy costs or regulatory uncertainty."

The company explains the move is necessitated by the fact that aluminum prices have declined by more than a third since peaking in 2011.

Alcoa has already idled 13% of its production capacity -- 568,000 metric tons -- over these concerns. Additional plant mothballings, closures, or sales now threaten an additional 460,000 tons, or an amount exceeding the production capacity of all wholly owned U.S. plants at rival Century Aluminum.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2402096, ~/Articles/ArticleHandler.aspx, 11/29/2015 10:00:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

I love things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

Today's Market

updated 1 day ago Sponsored by:
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 1.24 0.06%
NASD 5,127.53 11.38 0.22%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/27/2015 1:00 PM
AA $9.32 Down -0.09 -0.96%
Alcoa, Inc. CAPS Rating: ****