Alcoa to Close Automotive Casting Plant Due to Surplus Capacity

May 19, 2005
Kentucky plant had been operating 20%, Alcoa says

Alcoa Automotive Castings will be closing its Hawesville, KY, plant by the end of this year because of surplus capacity in its own organization, and the aluminum producer indicates it expects to sell the operation. Closing the plant will result in a charge of $45 million to $50 million, according to Alcoa, and 158 employees will be “impacted,” the corporation stated.

AAC president Allen Zwierzchowski stated: "This plant closing is not a reflection on the strong workforce we have in Hawesville. They are a talented and dedicated group. Unfortunately this facility is operating at less than 20% of its capacity. With certain program contracts winding down, the plant from a business perspective is no longer viable."

Alcoa Automotive Castings produces structural and “safety-critical” components that include knuckles, control arms, cradles, and sub-frames at other plants in Farsund, Norway, and Fruitport, MI. Of its plan to sell the Hawesville plant, Alcoa stated it would work with the community there to attract buyers that may use the plant and lessen the closing’s effect.