Inc. has officially broken ground on work to upgrade its
operations in Massena, N.Y., including the planned construction
of a new potline at its Massena East facility.
The project is
supported by a $10-million loan from the North Country Economic
Development Loan Fund and a power agreement with the New York
Power Authority (NYPA), New York Gov. Andrew Cuomos
office said July 1.
represents "a major step forward for the modernization
project," Cuomo said in a statement.
The project should
help to build the regions work force and bolster its
economy, John D. Martin, president of U.S. primary products for
the Pittsburgh-based aluminum company, said in a statement.
"Alcoa is pleased to work with the state of New York and the
community to ensure that we remain an integral part of the
North Countrys economic development."
New York has committed
to supplying 478 megawatts of low-cost electricity to
Alcoas Massena complex, a move that Cuomos office
said led the company to move forward with its modernization
plans and allowed it to commit to retaining 1,000 jobs at the
NYPA, the largest
state power organization in the United States, and Alcoa have
agreed to a hydropower contract that extends to 2045 with an
option for Alcoa to extend the agreement until 2055,
Cuomos office said.
Under the terms of the
contract, agreed to in 2009, Alcoa committed to protecting
approximately 1,000 jobs at its Massena operations and to
making capital investments of at least $600 million, of which
$42 million is represented by the potline expansion, the
governors office said.
Alcoa was NYPAs
first customer and signed its original power contract with the
state utility in 1955, three years before the operation of the
St. Lawrence-Franklin D. Roosevelt (FDR) plant, NYPAs
first generation facility, Cuomos office said, noting
that Alcoas Massena smelters account for about 60 percent
of St. Lawrence-FDRs generating output, and the aluminum
producer is also the biggest employer in New York north of
Alcoa operates two
smelters at its Massena facility that have a combined nameplate
capacity of 252,000 tonnes per year, according to the
Alcoa in late March
announced plans to spend $52 million through 2015 as it looks
to modernize its operations at Massena (
amm.com, April 1).