News Summary
Alcoa has secured a new power-supply contract with the New York Power Authority, ensuring the retention of 500 jobs at its Massena smelting plant for at least the next decade. The agreement offers 240 megawatts of low-cost power, supports significant capital investments in modernization, and highlights the importance of aluminum manufacturing for economic development in New York. Local officials stress the contract’s role in job security and regional economic stability, while the potential for extensions could further enhance capital investments over the next 20 years.
New York has secured a new power-supply contract between the New York Power Authority (NYPA) and Alcoa, a crucial step to ensure the continuity of operations at Alcoa’s Massena smelting plant, located in St. Lawrence County. This agreement guarantees the retention of 500 jobs at the facility for a minimum of the next 10 years.
The new contract is significant as it allocates 240 megawatts of low-cost power through NYPA’s “Preservation Power” program. This power supply is set to support Alcoa’s operations until March 31, 2036, with the possibility of two additional five-year extensions. Under this deal, Alcoa has also committed to making $30 million in capital investments over the next decade.
Furthermore, Alcoa plans to invest nearly $60 million by 2028 for the rebuilding and modernization of specific parts of its plant. This modernization effort is supported by a $5.2 million capital grant and $1 million in Excelsior Jobs Program tax credits from Empire State Development (ESD). The upgrades aim to enhance process stability and operational efficiency at the Massena plant, which is notable for being the world’s oldest continuously operating aluminum smelter, having a history over 120 years.
Contract Details and Economic Impact
The contract is designed to allow for potential extensions, with opportunities extending up to a total of 20 years. These extensions are contingent upon Alcoa maintaining a minimum of 500 full-time equivalent jobs as well as increasing capital investments. Should market conditions permit, Alcoa could extend the contract for an additional 10 years, leading to a potential of $145 million in total capital investments over 20 years.
Governor Kathy Hochul stressed the importance of the aluminum manufacturing sector for economic development on a national scale. NYPA Chairman John R. Koelmel noted that the renewal of this partnership with Alcoa is a vital move for advancing economic development across New York.
Significance of the Agreement
This deal represents an improvement over the expiring contract, which included a commitment to 450 jobs. Local lawmakers and officials have expressed strong support for the agreement, highlighting its pivotal role in ensuring economic stability and job retention in the region. Alcoa operates as one of the largest employers in the North Country and is headquartered in Pittsburgh, Pennsylvania.
In sum, this new power contract not only solidifies job security for local workers but also reinforces the commitment to modernizing the operations of Alcoa’s Massena facility. The successful execution of this agreement will be a defining factor in the economic landscape of St. Lawrence County and the surrounding areas in the coming years.
Deeper Dive: News & Info About This Topic
- CNYBJ
- Wikipedia: Alcoa
- North Country Now
- Google Search: Alcoa power contract Massena
- WWNY TV
- Google Scholar: Alcoa power contract
- NNY 360
- Encyclopedia Britannica: Aluminum Industry
- TipRanks
- Google News: New York Power Authority
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