Alcoa to Limit Capacity at Intalco Smelter

Alcoa announced in its first quarter 2020 results that it will curtail the remaining 230,000 metric tons of uncompetitive smelting capacity at its Intalco smelter in Ferndale, Wash., amid declining market conditions. The full curtailment, which includes 49,000 metric tons of earlier-reduced capacity, is expected to be complete this month.

The smelter recorded a net loss of $24 million in the first quarter of 2020. Intalco employs approximately 700 people, and the workforce will be significantly reduced due to the capacity reduction.

“While our employees have worked diligently to improve the facility, the smelter is uncompetitive, and current market conditions have exacerbated the facility’s challenges,” said Alcoa president and CEO Roy Harvey. “This is difficult because of the impact on our employees, and we will ensure appropriate support as we work to safely curtail the facility.”

The action will bring Alcoa’s total reduced smelting capacity to 880,000 metric tons, or approximately 30% of its total global smelting capacity.

The company will record estimated restructuring charges of approximately $25 million (pre- and after-tax), or $0.13 per share, in the second quarter of 2020 associated with the curtailment, for employee-related costs and contract termination costs, which are all cash-based charges expected be paid primarily in the third quarter of 2020.

In a statement calling for an end to Section 232 tariffs on imported aluminum, the Aluminum Extruders Council pointed to the curtailment as an example of how the tariffs have not led to a rebuild of domestic production of primary aluminum.

“With the closure of Alcoa’s Intalco Works in Ferndale, Wash., U.S. extruders lost their only remaining primary billet supplier west of the Mississippi. Having no other option, those extruders have been forced to place orders for imported billet. How could another American smelter close while the 232 has been in place for nearly three years? If the 232 was to grow U.S. production of primary aluminum, where are the announcements of expansions and new operations? The truth is, no one is going to build primary aluminum production in the U.S. with or without the 232,” said the statement, adding that the administration’s focus should be on China rather than the global market.

Quaker Windows & Doors Opens New Location in Missouri

Quaker Windows & Doors opened its new Eldon, Mo., location on May 18. The new location expands Quaker’s commercial door and window division’s manufacturing capacity to meet growing demand for its products, according to the company.

“We are very excited for this day to finally be here and look forward to sharing it with the Eldon community at a grand opening ceremony later this year,” says Jason Pratt, general manager of the Eldon manufacturing operations.

The first set of Eldon employees have been training for the opening at the company’s Freeburg, Mo., location.

Pulp Studio Doubles Capacity With New Laminating Equipment

Pulp Studio has added equipment and capacity into its laminating department, doubling the daily output in its 150,000-square-foot facility. The scheduled updates began in March 2020 and included a remodel and renovation of the company’s autoclave assets used for glass lamination.

“We felt it was time to transform and expand one of our larger autoclaves while replacing one of our less productive machines,” says Bernard Lax, CEO for Pulp Studio. “We have added a new 84-inch by 250-inch machine and updated one of our older machines to a 102-inch by 250-inch format. Essentially, this almost doubles our daily capacity to meet the high demand of both our ongoing production and the need for taller sizes of glass.”

Pulp Studio currently operates five autoclaves and two laminating furnaces, and has made major investments over the past year in green infrastructure projects including solar power, paint waste distillation and recycling of all its paper waste.

PGT Innovations to Consolidate Florida Manufacturing Facilities

PGT Innovations Inc. is consolidating its Florida manufacturing facilities. The move will optimize operations and reduce fixed costs, according to company officials. The company plans to cease production at its Orlando facility, where its WinDoor and EzeBreeze products are assembled, and relocate the manufacturing to Venice and Tampa, Fla., respectively.

“Consolidation of our Florida facilities is an important step in our integration plans following the acquisition of NewSouth Window Solutions that we expect to improve our overall operations, strengthen our business and reduce costs,” says Jeff Jackson, PGT president and CEO. “Once completed, we anticipate this consolidation will reduce our annualized operating expense by $3.5 to $3.8 million.”

Recognizing an already difficult time for affected employees the decision was made “after careful consideration, and we are committed to assisting our employees through this transition,” adds Jackson.

The company expects to record pre-tax special item charges of approximately $4.2 million to $4.6 million. Approximately $3 million to $3.4 million of the charges are expected to be paid in cash and are attributable primarily to separation and retention-until-closure payments for employees, rent on the Orlando facility, and equipment relocation expenses.

Non-cash charges of approximately $1.2 million are related to certain product rationalization initiatives, the company reported. Most of the pre-tax special item charges are expected to be recorded in 2020 and most of the cash outflows are expected to occur in 2020.

NOW REPRESENTING

Petersen Aluminum Corp. (PAC) has hired California-based Building Enclosure Solutions to support architects, installing contractors and others involved in the specification and installation of exterior metal cladding products in Northern California and Western Nevada. Representatives include Jonah Cross and Mike Lampkin … Mappi has appointed Glassmark’s Adam Makarowski as its new representative in Poland. Mappi’s previous representative for the Polish market was Mekanika.

BRIEFLY

Glaston Group has closed a deal for two B’VARIO TPS insulating glass lines with French window manufacturer TRYBA. Glaston also sold B’JUMBO and B’VARIO 270 insulating glass lines as well as an arrissing machine and handling equipment to Uniglass Polska for its new production hall in Łomz´a, Poland. The lines are scheduled for delivery in the second half of the year … Mappi recently sold one of its Ats 4.0 Eco Convection 2500×4200 tempering furnaces to Vitralum Glass Solutions, a frameless glass specialist in Central Florida. The company also sold a Mappi Ats 4.0 2500×5000 furnace to Tecnoglass Group in Cisterna di Latina, Italy.

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