Alcoa revenue fall has no effect on WA alumina plants

Alcoa and Alumina’s joint venture AWAC alumina refineries in Western Australia will continue to operate at current production levels despite the revenue fall reported by Alcoa.

According to Business Spectator, Alcoa reported a fourth quarter revenue drop of 18 per cent (to $US5.25 billion from $US6.38bn last year) as well as a net loss of $US 500 million.

As The Australian reports, fears such a result could have affected the AWAC plants at Kwinana, Pinjarra and Wagerup have not come to fruition.

Instead, the joint venture will curtail refining capacity at its Point Comfort, Texas refinery.

In the last 12 months, raw aluminium prices have dropped by more than 25 per cent (to about $US1,500 per tonne). This has been cause by a supply glut as well as weakening demand from China.

Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer said in a statement that he is appositive about 2016.

"2015 was a pivotal year for Alcoa,” he said.

“As a result of our closures, curtailments, productivity actions and new business structure we improved competitiveness and strengthened the portfolio. We are fully on track to launch two strong, standalone companies in the second half of 2016.”

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