Alcoa closes Kentucky plant

Alcoa today announced that it will close its Hawesville, Kentucky, automotive casting facility by the end of 2005.

The plant closure, which will impact 158 employees, is a result of excess capacity in Alcoa's automotive castings manufacturing system. Costs for the closing will total approximately $45 to $50 million pre-tax, the majority of which will be non-cash impairment charges and will impact second quarter earnings.

"This plant closing is not a reflection on the strong workforce we have in Hawesville. They are a talented and dedicated group," said Allen Zwierzchowski, President - Alcoa Automotive Castings. "Unfortunately this facility is operating at less than 20 percent of its capacity. With certain program contracts winding down, the plant from a business perspective is no longer viable."

Alcoa plans to sell the facility and will work with the community to attract buyers that could utilise the plant and lessen the impact of the closing.

Headquartered in Farmington Hills, Michigan, Alcoa Automotive Castings will continue to operate its other castings facilities in Farsund, Norway and Fruitport, Michigan.