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

Century Aluminum Completes Purchase of Alcan

century alum 300OWENSBORO, 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.

In Other News...

Kentucky Motorcycle Association Donates Funds from Poker Runs to Happy Feet Equals Learning Feet

HENDERSON COUNTY, Ky. (7/23/14) — The Kentucky Motorcycle Association, District 14 sponsored two Poker Runs during the… Read More

Greenville Family Loses Home, Possessions in Fire

GREENVILLE, Ky. (7/23/14) — James family of Greenville lost all their possessions in a house fire at around 6:30 p.m.… Read More

Most Read This Week (Site-Wide)

July 22, 2014 3619

Madisonville Woman Charged With…

in Top Stories by Madisonville Police Department
July 21, 2014 2540

Five Sent to Hospital After Two-Vehicle…

in Top Stories by Rita Dukes Smith, SurfKY News Director
July 21, 2014 1891

Business Spotlight - Painted Window Aims…

in Top Stories by Charles W. Riley II, SurfKY News
July 21, 2014 1790

Madisonville Police Arrest Reports - July…

in News by Madisonville Police Department
July 19, 2014 1740

Cash Mob Descends on Muhlenberg…

in Top Stories by Rita Dukes Smith, SurfKY News Director

Most Read Stories from Hopkins County

July 22, 2014 3619

Madisonville Woman Charged With…

in Top Stories by Madisonville Police Department
July 23, 2014 1274

Crime Stoppers Top Most Wanted - July 23,…

in Top Stories by Crime Stoppers
July 21, 2014 1160

Madisonville Fire Chief Announces…

in Top Stories by Rita Dukes Smith, SurfKY News Director
July 21, 2014 1109

Three Injured in Three-Vehicle Collision…

in Top Stories by Rita Dukes Smith, SurfKY News Director
July 19, 2014 1098

Local Hip-Hop Artist, Marack, Talks About…

in Top Stories by Amber Averitt, SurfKY News

Most Read Stories from Owensboro

July 21, 2014 1223

Portion of Southeastern Parkway Closed…

in News by Beth Cecil
July 22, 2014 892

Alliance for a Drug Free Owensboro and…

in News by Carla Shelton
July 22, 2014 807

Daviess County Traffic Advisory

in News by Keith Todd
July 23, 2014 698

Owensboro Neighborhood Alliance Meeting…

in News by Sherry Girten
July 21, 2014 481

Strahan Selected as Cravens Elementary…

in Top Stories by Julie Ellis

Most Read Stories from Muhlenberg County

July 21, 2014 2540

Five Sent to Hospital After Two-Vehicle…

in Top Stories by Rita Dukes Smith, SurfKY News Director
July 21, 2014 1891

Business Spotlight - Painted Window Aims…

in Top Stories by Charles W. Riley II, SurfKY News
July 19, 2014 1740

Cash Mob Descends on Muhlenberg…

in Top Stories by Rita Dukes Smith, SurfKY News Director
July 23, 2014 1189

Greenville Family Loses Home, Possessions…

in Top Stories by Charles W. Riley II, SurfKY News
July 23, 2014 756

Swinging for Sadie Raises $6,000 for…

in Top Stories by Paul McRee, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


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

social 06social 21social 22social 04social 03