Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

Century Aluminum Completes Purchase of Alcan

century alum 300HOPKINS COUNTY, Ky. (6/18/13) - Officials with Century Aluminum took the first step last week towards solidifying the status of Rio Tinto’s Alcan Sebree Works Smelter by completing the acquisition of the plant and its 500 employees.

The future of both plants has been in question since Century notified Henderson-based Big Rivers Electric in August 2012 that it intended to cease electric service in 12 months.

That was the first domino to fall in a series of events that threatened the economic fabric of the surrounding counties. In January 2013 Big River’s filed for a more than 20% rate increase with the Public Service Commission in Frankfort, stating that with the loss of its biggest customer that it would need to recoup money from everyone else.

A few weeks later Rio Tinto notified Big Rivers that it also intended to cease electrical operations.

Alcan officials stated that it was paying around $50 per megawatt-hour (mWh). The proposed increase would take them to about $60, which officials report is considerably higher than the national average paid by American aluminum smelters. $60 a mWh would be around 6 cents per kilowatt-hour (kWh).

The battle, in the end, moved to the state capitol, where legislators debated over the right of the two smelters to purchase electricity on the open market.

In mid-April Century issued a conditional notice to employees at its Hawesville, KY aluminum smelter of its intent to curtail 100% of plant operations on August 20, 2013 if the plant could not secure a competitively priced power contract. The announcement was made pursuant to the federal Worker Adjustment and Retraining Notification Act (WARN). The company also gave conditional notice to terminate its supply contract with its largest customer, the Southwire Company, given the potential plant closure effective August 20.

On April 30, 2013 Big Rivers and Century reached a tentative agreement. Under the provision, the electric supplier would purchase the power on the open market and then pass it to Century at market price, plus the additional costs incurred by the transmission.

A day later, in a joint press release from Big Rivers, Kenergy and Century, it was announced that Alcan had signed an Asset Sale Agreement with Montery, California based Century Aluminum. Century agreed to pay $61 million dollars for the Sebree based facility, and assume ownership of an addition $4 million dollars in liabilities.

Last week Century Aluminum Company announced today that its wholly owned subsidiary had completed the transaction with Rio Tinto Alcan, Inc. to acquire substantially all of the assets of the Sebree aluminum smelter.

“We are really happy to welcome the men and women of Sebree to Century,” commented Michael Bless, President and CEO. “With the changes occurring in U.S. energy markets, we believe Sebree, along with our existing smelter at Hawesville, will be competitive in the global market. We see a great opportunity for these facilities, which are located about 60 miles apart, to work together and share best practices in pursuit of safety and operational excellence.

“Access to market-based power is a critical enabler for sustained operations at Hawesville and Sebree. We believe the framework reached with the power provider for market-priced energy for Hawesville will serve as a model for Sebree.”

Deeds filed in the Webster County Clerk's Office record the transfer of properties in Webster and Henderson Counties from Alcan Primary Products Corporation to Century Aluminum Sebree LLC, presumed to be the future name of the facility.

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century’s corporate offices are located in Chicago, Illinois.

The Sebree smelter, located in Henderson County, Kentucky, employs over 500 people and has an annual production capacity of 205,000 metric tons of primary aluminum.

Matt Hughes
J-E News Editor

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

3/13 - 16

Stock Report

1 DOW 16,677.90
+216.58 (1.32%)    
2 S&P 1,950.82
+23.71 (1.23%)    
3 NASDAQ 4,452.79
+69.94 (1.60%)    
3/13 - 16
3/13 - 16

In Other News...

SurfKY Spotlight: Lynelle S. Eaves Realty

MUHLENBERG COUNTY, Ky. (10/22/14) — Lynelle S. Eaves Realty is featured in this edition of SurfKY Spotlight. Read More

Four Road Projects Awarded in Muhlenberg County

MUHLENBERG COUNTY, Ky. (10/22/14) — A total of $783,602 has been awarded to Road Builders for four blacktopping… Read More
3/13 - 16

Most Read This Week

October 17, 2014 12479

UK Women's Soccer Welcomes Ole Miss, No. 5/4…

in General Sports For All Sites by UK Athletics
October 20, 2014 6480

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 17, 2014 4431

Single Vehicle Collision Results in One Injury

in Local (Muhlenberg) Top News by Trooper S. C. Recke
October 19, 2014 4304

Kentucky Energy Department Releases Virtual Solar…

in General News For All Sites by Dick Brown
October 21, 2014 3371

UPDATE: Pedestrian Struck by Vehicle on Shamrock…

in Local (Hopkins) Top News by Officer C.P. Haynie
October 18, 2014 3258

Muhlenberg County Celebrates New Farmer’s Market

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 17, 2014 3204

Madisonville Police Arrest Reports - Oct. 17, 2014

in Hopkins News by Madisonville Police Department
October 17, 2014 2879

Woman Arrested at Taco Bell for DUI

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 2811

Man Charged for Assaulting Pregnant Wife

in Local (Hopkins) Top News by Madisonville Police Department
October 17, 2014 2609

Anti-Bullying Task Force to Hold First Meeting

in General News For All Sites by Office of the Governor

Stories Trending Today

October 22, 2014 2390

Hopkins County Grand Jury Indictments

in Hopkins News by Karen McKnight
October 22, 2014 2240

Failure to Signal Ends in Drug Arrest

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 2162

Resident Returns Home to People Using Drugs,…

in Local (Hopkins) Top News by Madisonville Police Department
October 22, 2014 2022

Convicted Felon Charged for Handgun Possession…

in Local (Muhlenberg) Top News by Trooper Stu Recke
October 22, 2014 1695

Madisonville Police Arrest Reports - Oct. 22, 2014

in Hopkins News by Madisonville Police Department
October 23, 2014 1603

Man Arrested for Endangering Welfare of Minor

in Local (Hopkins) Top News by Madisonville Police Department
October 22, 2014 1530

The Sanctuary Opens Muhlenberg County Branch

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 22, 2014 1454

Four Road Projects Awarded in Muhlenberg County

in Local (Muhlenberg) Top News by Rebecca Hanchett
October 22, 2014 1374

UK Soccer's Justin Laird Named National Player of…

in General Sports For All Sites by UK Athletics
October 22, 2014 1350

Lake Malone Halloween Bash Set for This Weekend

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss