NEW YORK -- Aluminum giant Alcoa (IW 500/53) said Monday that it would permanently close a smelter in Italy as it seeks to lower production costs around the world.
The company had curtailed activity at the Portovesme smelter on the Italian island of Sardinia in 2012 due to its high operating costs.
"The fundamental reasons that made the Portovesme smelter uncompetitive unfortunately have not changed," said Bob Wilt, president, Alcoa Global Primary Products.
The closure will reduce Alcoa's global smelting capacity by 150,000 metric tons to 3.6 million tons per year.
Alcoa said it expected to book a third-quarter charge between $170 million and $180 million for the closure.
Copyright Agence France-Presse, 2014