MASSENA - The decision to close the Alcoa East plant is expeced to cost the company between $90 million and $110 million, according to paperwork filed with the U.S. Securities and Exchange Commission
This information comes from a Form 8-K filed with the commission on Jan. 21.
According to Wikipedia, a Form 8-K is a very broad form used to notify investors of any material event that is important to shareholders or the United States Securities and Exchange Commission.
On Jan, 15, 2014, the management of Alcoa Inc. approved the permament shutdown and demolition of the remaining two potlines that employ Soderberg technology at the Massena East smelter located in New York, the filing read. The two Soderberg potlines will be fully shutdown by the end of the first quarter of 2014. Demolition and remediation activities related to this action will begin in the second quarter of 2014 and are expected to be completed by the end of 2018 and 2020, respectively.
The filing then details planned expenses as a result of the decision, estimating those expenses could possibly exceed $100 million this quarter.
These charges include $35 million to $40 million for the accelerated depreciation of the potlines and related fixed assets; $25 million to $30 million for asset retirement obligations resulting from the planned demolition of the two potlines and related infrastructure; $15 million to $20 million for employee-related costs; and $15 million to $20 million for other related costs. Of these charges, approximately $55 million to $65 million will result in future cash outlays, including $25 million to $35 million in 2014.