N.Y. will power Alcoa aluminum expansion
Firm will invest $600 million in Massena smelters
By Tom Stundza -- Purchasing, 1/14/2009 6:51:00 PM
New York Governor David Paterson this week approved a new long-term, 478 megawatt electrical power program that will allow Alcoa to upgrade its upstate Massena aluminum plants at a cost of $600 million. The guaranteed power plan with the New York Power Authority, "is intended to ensure that the North Country's largest private employer will remain … for decades to come,” according to a statement from the governor's office.
Under the contract, which will be effective on July 1, 2013, the power authority will continue to make low-cost hydropower available to Alcoa for 30 years. In exchange, Alcoa will guarantee continue operations by the two smelters in Massena, boost combined output to 278,000 metric tons/year from 255,000 metric tons/year now and invest in advanced emission-reduction technologies.
As part of the deal, Alcoa also will fund a $10 million North Country Economic Development Fund intended for use in St. Lawrence, Franklin, Essex, Jefferson, Lewis, Hamilton and Herkimer counties and on the Akwesasne Mohawk Reservation.
Two weeks ago, Alcoa announced major layoffs and the closing of some downstream operations.
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