Saturday, October 1

Alcoa’s proposal to stop the vats for two years in San Cibrao is approved

The plant of Alcoa San Cibrao, the only primary aluminum remaining in Spain, has lived this Tuesday one of the most important days in its history, at go ahead with the acceptance of the last proposal of the multinational to interrupt the manufacture of this chemical element for two years.

The committee informed the press, at half past twelve, of the result of the referendum: out of a total of 1,063 registered workers, the votes cast were 808, and of them, 663 in favor (69.68% ), 196 against (24.26%), 40 blank (4.95%) and 9 null (9.11%).

In the contracting companies, which could also exercise this right, the panorama has changed: the ballots have been 180, and of these 105 (58.3% against), 54 in favor (30%), and 21 blank (11 , 7%).

This has not preventede the agreement is approved to be able to start the process of cessation of primary aluminum production and subsequent restart.

The negotiations developed over the months ended with a single possibility on the part of the company that owns the Cervo industrial complex (Lugo), which insisted, due to the alleged economic difficulties, to stop the electrolysis cells during those twenty-four months.

The proposed agreement that has now been endorsed contemplates that Alcoa is committed to working with 8 energy suppliers with which it is already in contact, to reach medium and long-term agreements (PPAs), which would come into force from 2024 and have a 10-year term.

Likewise, as the group itself has reported, it agrees to the creation of a table to monitor the agreement and the agreed investments, made up of the works council -two members per union-, the Xunta de Galicia and the Government of Spain, which will meet monthly for the first six months and quarterly after that half year.

Regarding the plans for 2022 and 2023, Alcoa offers a billing guarantee for auxiliaries for the first two years, with contracts guaranteed to three annuities (from 2022 to 2024) for those external companies directly affected by the temporary cessation.

In fact, Alcoa has communicated that planned investments and other issues are expected to generate the need for service provision by such assistants.

Another commitment has to do with Alcoa’s hiring preference for local supply companies and carriers.

Regarding the investments planned for the first two years, it foresees 42 million euros for transport and cargo, switch to gas and reconstruction of the large anode firing furnace; 6 million euros for a new transformer (TRG) with voltage adjuster, designed for 200,000 amps; as well as the acquisition of a homogenizing furnace, valued at 3 million euros, and magnetic compensation bars, for an amount of twelve million.

Expected expenses include another five million euros for the installation of four new casting tables for the manufacture of aluminum billet.

On the other hand, the multinational undertakes to make a bank deposit amounting to 103 million euros, result of the sum of the committed investments and the cost of restarting the facilities, at the disposal of Aluminio Español SL and whose management would be shared with the works council, under the supervision of the administrations.

According to the proposal, the justified amounts of the investments that were being executed would be released on a monthly basis, always with the consent of the committee, leaving the remainder at the disposal of a third party in the event of non-compliance.

In return, heThe workers had to accept, as has happened, the temporary cessation with programmed stop of the activity for two years in Electrolysis and Electrodes as of January 1, 2022, with the completion of the process in three weeks.

The restart to 100% (currently at 85%) of the activity would take place as of January 1, 2024, with an estimate of 6 months for the restart of the activity and a reserve of 35 million euros to carry out the operations necessary.

However, the activity in the Foundry and the Alumina Plant will continue, for which the company has facilitated the commercial plan during these years, at a rate of 65,000 tons per year of billet and forecast of sale of 25,000 annual tons of aluminum plate.

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In this way, “the commitments with the clients would not be affected. Alcoa would optimize the remelting of the primary aluminum produced during the strike period, as well as that of other suppliers ”, says the note from the owner of the facilities.

Another key to the proposal is the commitment by the company that it will not carry out any type of collective dismissal process for four years, until December 31, 2025, in addition to giving green light for a new collective agreement valid for six years -from 2020 to 2025-. E

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