Alcoa and IGNIS EQT Form Joint Venture to Support Future of Alcoa San Ciprián Operations
Alcoa (NYSE: AA) and IGNIS EQT have formed a joint venture to support operations at Alcoa's San Ciprián complex, effective March 31, 2025. Alcoa will maintain 75% ownership and operational control, while IGNIS EQT will hold 25%. The partners have contributed $81 million and $27 million respectively, with potential additional funding of up to $108 million from Alcoa.
The agreement enables the planned restart of the San Ciprián smelter in 2025, following its 2021 curtailment due to high energy costs. The facility recorded a $50 million net loss and negative cash flow of $60 million in 2024. For 2025, projections indicate a net loss of $80-100 million ($0.31-0.39 per share), with expected negative cash flow of $90-110 million.
The partnership combines Alcoa's aluminum operations expertise with IGNIS EQT's energy market knowledge. The Spanish National Government and Xunta de Galicia have pledged support for the complex's long-term success.
Alcoa (NYSE: AA) e IGNIS EQT hanno formato una joint venture per supportare le operazioni presso il complesso di San Ciprián di Alcoa, a partire dal 31 marzo 2025. Alcoa manterrà il 75% della proprietà e il controllo operativo, mentre IGNIS EQT deterrà il 25%. I partner hanno contribuito rispettivamente con 81 milioni di dollari e 27 milioni di dollari, con un potenziale finanziamento aggiuntivo fino a 108 milioni di dollari da parte di Alcoa.
L'accordo consente il previsto riavvio della fonderia di San Ciprián nel 2025, dopo la sua chiusura nel 2021 a causa dei costi energetici elevati. L'impianto ha registrato una perdita netta di 50 milioni di dollari e un flusso di cassa negativo di 60 milioni di dollari nel 2024. Per il 2025, le proiezioni indicano una perdita netta di 80-100 milioni di dollari (0,31-0,39 dollari per azione), con un flusso di cassa negativo previsto di 90-110 milioni di dollari.
La partnership combina l'expertise di Alcoa nelle operazioni di alluminio con la conoscenza del mercato energetico di IGNIS EQT. Il Governo Nazionale Spagnolo e la Xunta de Galicia hanno promesso supporto per il successo a lungo termine del complesso.
Alcoa (NYSE: AA) e IGNIS EQT han formado una empresa conjunta para apoyar las operaciones en el complejo de San Ciprián de Alcoa, a partir del 31 de marzo de 2025. Alcoa mantendrá el 75% de la propiedad y el control operativo, mientras que IGNIS EQT tendrá el 25%. Los socios han contribuido con 81 millones de dólares y 27 millones de dólares respectivamente, con un posible financiamiento adicional de hasta 108 millones de dólares por parte de Alcoa.
El acuerdo permite el reinicio previsto de la fundición de San Ciprián en 2025, tras su cierre en 2021 debido a los altos costos de energía. La instalación registró una pérdida neta de 50 millones de dólares y un flujo de caja negativo de 60 millones de dólares en 2024. Para 2025, las proyecciones indican una pérdida neta de 80-100 millones de dólares (0,31-0,39 dólares por acción), con un flujo de caja negativo esperado de 90-110 millones de dólares.
La asociación combina la experiencia de Alcoa en operaciones de aluminio con el conocimiento del mercado energético de IGNIS EQT. El Gobierno Nacional Español y la Xunta de Galicia han prometido apoyo para el éxito a largo plazo del complejo.
알코아 (NYSE: AA)와 IGNIS EQT가 2025년 3월 31일부터 알코아의 산 시프리안 복합단지에서의 운영을 지원하기 위해 합작 회사를 설립했습니다. 알코아는 75%의 소유권과 운영 통제를 유지하며, IGNIS EQT는 25%를 보유합니다. 파트너들은 각각 8,100만 달러와 2,700만 달러를 기여했으며, 알코아는 추가로 최대 1억 8백만 달러의 자금을 제공할 가능성이 있습니다.
이 계약은 2021년 높은 에너지 비용으로 인해 중단된 산 시프리안 제련소의 계획된 재가동을 2025년에 가능하게 합니다. 이 시설은 2024년에 5천만 달러의 순손실과 6천만 달러의 부정적 현금 흐름을 기록했습니다. 2025년에는 8천만에서 1억 달러(주당 0.31-0.39달러)의 순손실과 9천만에서 1억 1천만 달러의 부정적 현금 흐름이 예상됩니다.
이번 파트너십은 알코아의 알루미늄 운영 전문성과 IGNIS EQT의 에너지 시장 지식을 결합합니다. 스페인 정부와 갈리시아 자치정부는 복합단지의 장기적인 성공을 위한 지원을 약속했습니다.
Alcoa (NYSE: AA) et IGNIS EQT ont formé une coentreprise pour soutenir les opérations du complexe de San Ciprián d'Alcoa, à compter du 31 mars 2025. Alcoa conservera 75 % de la propriété et le contrôle opérationnel, tandis qu'IGNIS EQT détiendra 25 %. Les partenaires ont respectivement contribué 81 millions de dollars et 27 millions de dollars, avec un financement supplémentaire potentiel allant jusqu'à 108 millions de dollars de la part d'Alcoa.
L'accord permet le redémarrage prévu de l'usine de San Ciprián en 2025, après son arrêt en 2021 en raison des coûts énergétiques élevés. L'installation a enregistré une perte nette de 50 millions de dollars et un flux de trésorerie négatif de 60 millions de dollars en 2024. Pour 2025, les prévisions indiquent une perte nette de 80 à 100 millions de dollars (0,31 à 0,39 dollar par action), avec un flux de trésorerie négatif attendu de 90 à 110 millions de dollars.
Le partenariat combine l'expertise d'Alcoa dans les opérations d'aluminium avec les connaissances d'IGNIS EQT sur le marché de l'énergie. Le gouvernement national espagnol et la Xunta de Galice ont promis leur soutien pour le succès à long terme du complexe.
Alcoa (NYSE: AA) und IGNIS EQT haben ein Joint Venture gegründet, um die Operationen im Alcoa-Komplex San Ciprián ab dem 31. März 2025 zu unterstützen. Alcoa wird 75% des Eigentums und die operative Kontrolle behalten, während IGNIS EQT 25% halten wird. Die Partner haben jeweils 81 Millionen Dollar und 27 Millionen Dollar beigetragen, mit einer möglichen zusätzlichen Finanzierung von bis zu 108 Millionen Dollar durch Alcoa.
Die Vereinbarung ermöglicht den geplanten Neustart des San Ciprián-Hüttenwerks im Jahr 2025, nach seiner Stilllegung im Jahr 2021 aufgrund hoher Energiekosten. Die Anlage verzeichnete 2024 einen Nettoverlust von 50 Millionen Dollar und einen negativen Cashflow von 60 Millionen Dollar. Für 2025 deuten die Prognosen auf einen Nettoverlust von 80-100 Millionen Dollar (0,31-0,39 Dollar pro Aktie) hin, mit einem erwarteten negativen Cashflow von 90-110 Millionen Dollar.
Die Partnerschaft kombiniert die Expertise von Alcoa in der Aluminiumproduktion mit dem Wissen von IGNIS EQT über den Energiemarkt. Die spanische Nationalregierung und die Xunta de Galicia haben ihre Unterstützung für den langfristigen Erfolg des Komplexes zugesagt.
- Strategic partnership with IGNIS EQT brings energy market expertise
- Government support secured from Spanish National Government and Xunta de Galicia
- Clear restart plan for previously curtailed smelter operations
- Projected net loss of $80-100 million for 2025
- Expected negative cash flow of $90-110 million in 2025
- $50 million net loss and $60 million negative cash flow in 2024
- Additional funding requirement of up to $108 million may be needed
Insights
This joint venture between Alcoa and IGNIS EQT represents a strategic but financially challenging move. Alcoa has committed to a 75% stake in the venture with an initial contribution of
The financial outlook remains concerning. The San Ciprián smelter recorded a pre-tax loss of approximately
The structure of the deal is noteworthy - Alcoa may provide up to
This partnership demonstrates Alcoa's commitment to fulfilling its Viability Agreement obligations while seeking to address the core issue that led to the 2021 curtailment: exorbitant energy costs. IGNIS EQT's energy expertise creates potential synergies that could eventually improve the economics, though near-term financial pain is inevitable.
The Alcoa-IGNIS joint venture addresses a critical challenge in aluminum production - energy costs. The San Ciprián smelter was curtailed specifically due to "exorbitant energy costs" in 2021, making IGNIS EQT's involvement strategically significant. As a vertically integrated energy company based in Spain, IGNIS brings specialized knowledge of local energy markets that Alcoa lacks.
Aluminum smelting is extremely energy-intensive, typically consuming 13-14 MWh per ton of aluminum produced. At European electricity prices, energy often represents
The governmental support mentioned from both Spanish National Government and Galician authorities (Xunta de Galicia) suggests potential regulatory assistance or energy policy accommodations. This political backing is crucial in Spain's complex energy landscape.
Despite these positive structural elements, the immediate financial outlook remains challenging. The continuing losses projected for 2025 indicate that even with IGNIS's expertise, turning around the energy economics will take time. The
Alcoa also meets obligation with planned smelter restart
Under the joint venture agreement, effective March 31, 2025, Alcoa will own a 75 percent interest and continue as the managing operator and IGNIS EQT will own a 25 percent interest. Alcoa and IGNIS EQT contributed
The joint venture agreement allows for the planned restart of the San Ciprián smelter in 2025, a commitment made within the Viability Agreement signed between Alcoa and the employees when the smelter was curtailed in 2021 due to exorbitant energy costs. Work to support the restart was underway prior to today’s announcement. In 2024, the San Ciprián smelter recorded a net loss (pre-tax) of approximately
Based on recent pricing, the Company expects to record a net loss (pre-tax and noncontrolling interest) for the smelter of approximately
The joint venture agreement was a result of a lengthy process on Alcoa’s part to improve the long-term outlook for the San Ciprián operations. The joint venture will leverage Alcoa’s deep experience in managing global aluminum operations along with IGNIS EQT’s strong knowledge of energy markets, market access and energy management services. A pathway to the partnership was announced in October 2024 and was conditional upon delivery of key areas of cooperation with San Ciprián’s stakeholders. Since that announcement, the Spanish National Government and the Xunta de Galicia have engaged in a thoughtful and supportive manner and have remained committed to further supportive actions to the long-term success of the complex.
The joint venture will now focus on ensuring the stable and sustainable operations of the San Ciprián complex within the approved funding.
FTI Consulting Spain and FTI Capital Advisors Spain acted as financial and M&A advisors respectively to Alcoa in the transaction. Uría Menéndez has acted as lead transaction counsel for Alcoa, including in Spanish law matters.
About Alcoa Corporation
Alcoa (NYSE: AA, ASX: AAI) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. With a values-based approach that encompasses integrity, operating excellence, care for people and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability and stronger communities wherever we operate.
About IGNIS EQT
IGNIS EQT is a company
Dissemination of Company Information
Alcoa intends to make future announcements regarding company developments and financial performance through its website, www.alcoa.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls and webcasts.
Cautionary Statement on Forward-Looking Statements
This press release contains statements that relate to future events and expectations about the joint venture, including but not limited to, future investments in and the expected financial position of the San Ciprián operations, and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “aim,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “projects,” “reach,” “seeks,” “sees,” “should,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Alcoa’s filings with the Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.
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Alcoa Investor Contact:
Yolande Doctor
412-992-5450
Yolande.B.Doctor@Alcoa.com
Alcoa Media Contacts:
Corporate:
Courtney Boone
(412)527-9792
Courtney.Boone@Alcoa.com
Raquel Gonzalez Redondo
(+34)611 57 31 55
Raquel.GonzalezRedondo@alcoa.com
For IGNIS
Inés Aparicio Hurtado
ines.aparicio@ignis.es
Source: Alcoa
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