Aluminum producer Alcoa Inc. said Tuesday it secured hydropower from a public utility in Washington state to power its aluminum smelter through 2028.
The new 17-year contract, which begins in 2011, will provide enough energy to enable the startup of a third potline at the smelter in 2012, the Pittsburgh-based company said. Financial terms weren't disclosed.
The deal is expected to increase production by 42,000 metric tons per year (mpty), bringing another 60 to 80 jobs to Wenatchee, Wash.
The Wenatchee smelter is currently operating at 100,000 mpty and current plans call for it to reach 142,000 mtpy when the new contract begins.
Shares fell 60 cents to $34.34 in midday trading.
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