Québec: a priority investment for Alcoa worldwide
In Canada, Alcoa employs over 3,900 people in 10 locations, including the five Alcoa Canada Global Primary Products plants. Its activities range from primary aluminum to the transportation and aerospace sectors, and architectural systems.
We recognize our economic importance to our clients, shareholders, employees and host communities. These stakeholders are vested in our facilities, our purchase of goods and services, the taxes and income taxes we pay, the salaries of our employees and our various community investments.
Disciplined financial management is essential to our long-term success and that of our stakeholders. We apply rigorous financial controls and adopt a prudent financial structure based on strategic investments and cost reduction initiatives.
In November 2011, we announced an agreement with the Québec Government regarding Alcoa’s development program for Québec. The program will considerably increase the competitiveness of Alcoa’s cost structure, while reducing its environmental footprint. The five-year investment plan totals $2.1 billion for our three smelters. The program includes 25-year electrical supply contracts at the regular industrial rate (rate L) and is enabling the Baie-Comeau Smelter to proceed to the engineering phase of its modernization, including the start-up of its new potline by the end of 2015.
An integral part of the Baie-Comeau modernization project is replacing old cells that use the Söderberg technology with a new electrolytic potline that boasts an annual production capacity of 160,000 metric tons. The construction phase of this project will create approximately 6,800 job/years and generate economic spin-offs of some $500 million.
Thanks to the technological innovations developed at Alcoa’s Global Center of Excellence, the Deschambault Smelter will be able to increase its operational current intensity to 405,000 amps by 2016, which will allow it to increase its production capacity by 25,000 metric tons annually.
This five-year investment plan will have even more positive impacts on Québec. Alcoa is contributing $50 million to the Economic Development Fund managed by the Québec Government. In addition, the company will create a $25-million Alcoa Fund for Sustainable Communities for the three Québec communities where it operates. This fund is over and above the $3-million partnership agreement between Alcoa and the new Maison du développement durable, located in the heart of Montréal’s downtown core.