Alcoa puts Excel plant up for sale

STAFF AND WIRE REPORT
WARREN -- Employees at Alcoa's Excel Extrusions here are concerned but "cautiously optimistic" after learning Tuesday morning that their plant has been put up for sale by the aluminum producer.
Mary Frazzini, Excel human resources manager, said eight employee meetings were conducted Tuesday to inform the workers about Alcoa's plans, which she said came as a surprise.
They had many questions, including what will happen to their jobs and benefits, Frazzini said.
The news about the Warren plant, 1000 University St. N.E., was included in an announcement issued by Alcoa on Tuesday -- saying it will shed 6,700 jobs as part of a restructuring program designed to improve profits and efficiency.
Also, Alcoa said it had agreed to join its soft alloy extrusion business with the Sapa Group, part of Norway's Orkla, in a joint venture the two companies intend to take public.
Along with Excel in Warren, two other soft alloy plants are not included in the joint venture, and will be sold. They are in Tifton, Ga., and Plant City, Fla., Alcoa said.
Frazinni said Excel, which has 150 employees, all nonunion, will continue to operate and stay part of Alcoa until it Excel is sold.
Still investing
She said Alcoa is continuing to invest in the Excel plant, which has the newest aluminum extrusion press and paint line in North America. Frazinni said 500,000 worth of new equipment will be installed in December, and Alcoa has budgeted another 1 million in capital improvements for 2007.
She said Excel, which extrudes aluminum primarily for windows and doors in the construction industry, has a skilled work force that has received "best practices" recognition from the company. Also, she said Excel has achieved a "huge financial turnaround" in the last year that has brought it very close to being in the black.
The new joint venture, which will be majority owned by Orkla and operated by Sapa, is expected to be created by the end of the first quarter, pending government approval.
Alcoa's soft alloy extrusion business has about 6,400 employees at 22 plants in eight countries. It had shipments of 585,000 metric tons and revenue of 2.1 billion in 2005.
Sapa's smaller soft alloy business employs about 6,000 people at 18 facilities in 12 countries and shipped 275,000 metric tons for revenue of 1.3 billion.
The plant closings and consolidations are expected to save Alcoa about 125 million annually before taxes, according to the company. The job cuts represent about 5 percent of Alcoa's 129,000 employees in 44 countries.