Alcoa Corporation announced on September 29, 2025, the permanent closure of its Kwinana alumina refinery in Western Australia, following a curtailment of production in June 2024. The decision was based on factors including the facility's age, scale, operating costs, market conditions, and bauxite grade challenges.
In the third quarter of 2025, Alcoa will record restructuring and related charges of approximately $890 million ($623 million after-tax, or $2.41 per share), which includes approximately $375 million of non-cash asset impairment charges. Cash outlays related to the permanent closure are expected to approximate $600 million over the next six years, with about $75 million anticipated in the fourth quarter of 2025.
The permanent closure of Kwinana's 2.2 million metric tons of annual capacity will reduce Alcoa’s global consolidated refining capacity to 11.7 million metric tons. Alcoa will work with stakeholders on a safe and responsible closure and prepare the site for new economic development opportunities.
The company also updated its third-quarter 2025 outlook, with operational tax expense expected to approximate $100 million, an increase of $30 million from the previous estimate due to the restructuring charge. Additionally, adjustments to asset retirement obligations, primarily in Brazil, will result in a $50 million (after-tax, or $0.19 per share) charge to Cost of goods sold in the third quarter.
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