8-K
Alcoa Corp (AA)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 9, 2021
ALCOA CORPORATION
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 1-37816 | 81-1789115 |
|---|---|---|
| (State or Other Jurisdiction<br><br> <br>of Incorporation) | (Commission<br><br> <br>File Number) | (IRS Employer<br><br> <br>Identification No.) |
| 201 Isabella Street, Suite 500<br><br> <br>Pittsburgh,<br> Pennsylvania | 15212-5858 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (412) 315-2900
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions \(see General Instruction A.2. below\):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | AA | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.05 | Costs Associated with Exit or Disposal Activities. |
|---|
On December 9, 2021, Alcoa Corporation (the “Company”) approved the permanent closure of the Wenatchee aluminum smelter (the “Smelter”) located in Washington state, U.S.A, effective immediately. The Smelter has been fully curtailed since 2015. The Company’s decision to permanently close the Smelter was made in connection with the Company’s ongoing strategic review of its global production capacities to lower costs and drive sustainable profitability, which includes a review of 1.5 million metric tons of aluminum smelting capacity, considering opportunities for significant improvements, curtailments, closures, or divestitures. The Smelter has a total capacity of 146,000 metric-tons-per-year. Decommissioning and demolition activities to prepare the site for potential redevelopment will begin immediately.
The Company will record restructuring and related charges in the fourth quarter of 2021 of approximately $75 million (pre- and after-tax), or $0.40 per share, related to the permanent closure of the Smelter. These charges include: approximately $24 million of asset impairments; approximately $40 million to write off the remaining net book value of various assets; approximately $21 million related to decommissioning and demolition obligations, such as asbestos abatement and material disposal; and $1 million of employee severance costs; partially offset by approximately $11 million reduction to energy contract related liabilities. Cash outlays related to the permanent closure of the site are expected to be approximately $60 million over the next seven years, with approximately $10 million to be spent in 2022.
The Smelter currently has 18 employees, some of whom will remain to assist with decommissioning, demolition and redevelopment work.
A copy of the related press release is attached hereto as Exhibit 99.1.
Forward-Looking Statements
This Current Report on Form 8-K contains statements that relate to future events and expectations, including those relating to permanent closure of the smelter and associated decommissioning, demolition, and potential redevelopment activities and the Company’s expectations regarding the timing of the closure activities and types and estimates of associated costs and financial impact, and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “projects,” “reach,” “seeks,” “sees,” “should,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Alcoa Corporation’s filings with the Securities and Exchange Commission. Alcoa Corporation disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| Exhibit<br><br> <br>number | Description |
|---|---|
| 99.1 | Press release of Alcoa<br> Corporation dated December 13, 2021 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
The internet addresses in the press release attached as Exhibit 99.1 hereto are included only as inactive textual references and are not intended to be active links to the information therein. Information contained on such websites or platforms, or that can be accessed therein, do not constitute a part of this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ALCOA CORPORATION | ||
|---|---|---|
| Date: December 13, 2021 | By: | /s/ Marissa P. Earnest |
| Marissa P. Earnest | ||
| Senior Vice President, Chief Governance Counsel | ||
| and Secretary | ||
| Exhibit 99.1 | ||
| --- |
Alcoa Announces Closure of Wenatchee Smelter in Washington State
PITTSBURGH--(BUSINESS WIRE)--December 13, 2021--Alcoa Corporation (NYSE: AA) announced today the closure of 146,000 metric tons of aluminum smelting capacity at the Wenatchee Works aluminum smelter located in the state of Washington.
The process to permanently decommission the smelter, which has been fully idle since 2015, will begin immediately to prepare the Wenatchee site for potential redevelopment.
“Our analysis does not support the long-term operation of the Wenatchee smelter, so we are now focused on preparing this site for a new future,” said Alcoa President and CEO Roy Harvey. “We appreciate the support that Alcoa has received from our community stakeholders over these many years, and we look forward to continued work with them to develop a robust redevelopment and reuse plan for the site.”
Alcoa will record restructuring and related charges in the fourth quarter 2021 of approximately $75 million (pre- and after-tax), or $0.40 per share, related to the permanent closure. Cash outlays related to the permanent closure of the site are expected to be approximately $60 million over the next seven years, with approximately $10 million to be spent in 2022.
The projected cash outlays do not include any potential proceeds from the planned redevelopment efforts. The Wenatchee site includes approximately 2,800 acres of land with intermodal transportation and utility infrastructure.
The Wenatchee site currently employs 18 people, some of whom will remain to assist with demolition and redevelopment work.
Today’s closure announcement aligns with Alcoa’s five-year review of its operating assets and brings Alcoa’s total global smelting capacity to 2.8 million metric tons. First announced in October of 2019, the portfolio review includes evaluations for 1.5 million metric tons of smelting capacity for significant improvements, curtailments, closures, or divestitures.
With today’s action, the Company has achieved approximately 60 percent of its 1.5 million metric ton goal in its smelting portfolio review through announced improvements at Portland Aluminium in Australia and Alumar in Brazil and the curtailment of the Intalco smelter in Washington State.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina, and aluminum products, and is built on a foundation of strong values and operating excellence dating back 135 years to the world-changing discovery that made aluminum an affordable and vital part of modern life. Since developing the aluminum industry, and throughout our history, our talented Alcoans have followed on with breakthrough innovations and best practices that have led to efficiency, safety, sustainability, and stronger communities wherever we operate.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company developments and financial performance through its website, www.alcoa.com,as well as through press releases, filings with the Securities and Exchange Commission, conference calls, and webcasts.
Forward-Looking Statements
This press release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “projects,” “reach,” “seeks,” “sees,” “should,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Alcoa Corporation’s filings with the Securities and Exchange Commission. Alcoa Corporation disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.
Contacts
Investor Contact
James Dwyer
412-992-5450
James.Dwyer@alcoa.com
Media Contact
Jim Beck
412-315-2909
Jim.Beck@alcoa.com