Alcoa, Ignis close to signing joint funding deal for Spain aluminium plant

Smartoptics ASA

16/10/2024 21:10

MADRID, Oct 16 (Reuters) - Alcoa  AA.N  said on
Wednesday it was "progressing" toward a strategic cooperation
agreement with Spanish renewable energy company Ignis to fund
the operation of the U.S. metal producer's aluminium plant in
northwestern Spain. 
    Under the proposed deal, Alcoa would contribute 75 million
euros ($81 million) and Ignis would make an initial investment
of 25 million euros, giving it 25% ownership of the San Ciprian
plant in the Galicia region, Alcoa said in a statement.
    Pittsburgh, Pennsylvania-based Alcoa said it would fund up
to another 100 million euros as needed, while prioritising
future cash returns. Any additional funding would be shared
under a 75%-25% split between Alcoa and Ignis, respectively.   
    The potential deal requires the approval of San Ciprian
stakeholders, which include the Spanish government and regional
authorities in Galicia.  
    Alcoa has complained for years that steep energy prices in
Spain had made its plant uncompetitive, which worsened when
European power prices soared to record highs during the COVID-19
pandemic and the war in Ukraine.
    Earlier this year, Alcoa started looking to sell 100% of the
San Ciprian plant. It said that no viable bid was made despite
sharing information with 60 potential investors.
    ($1 = 0.9207 euros)

 (Reporting by David Latona; Editing by Leslie Adler)
 ((david.latona@thomsonreuters.com; +34 918 35 68 13;))