News Summary
Governor Kathy Hochul has announced a new power supply contract between the New York Power Authority and Alcoa that will secure a $30 million investment, supporting around 500 jobs at Alcoa’s Massena smelting plant. This contract ensures a 240-megawatt allocation of low-cost power until 2036 and includes options for additional extensions, promoting economic growth and competitiveness in the aluminum sector.
Massena, New York – Governor Kathy Hochul announced a significant new power supply contract between the New York Power Authority (NYPA) and Alcoa that will secure a $30 million investment and support approximately 500 jobs at Alcoa’s Massena smelting plant in St. Lawrence County. This contract represents a critical step forward for both the company and the local economy.
Under this agreement, which includes a 240-megawatt allocation of low-cost power through the “Preservation Power” program, Alcoa’s operation at the Massena plant will receive the necessary resources to sustain its activities until March 31, 2036. This power allocation is essential for the company to maintain its production levels and meet market demands. Moreover, the contract outlines options for two additional five-year extensions, contingent upon Alcoa maintaining a minimum of 500 full-time equivalent jobs and increasing its capital investments.
Alcoa’s Massena plant is a major player in the aluminum production sector and one of the largest employers in the North Country. The company has committed to making nearly $60 million in additional investments through 2028, aimed at modernizing and rebuilding parts of the facility. These investments are intended to enhance both process stability and operational efficiency, ensuring that the plant remains competitive in the rapidly-evolving aluminum market.
Funding for the modernization efforts will include a $5.2 million capital grant and $1 million in Excelsior Jobs Program tax credits provided by Empire State Development (ESD). This financial support highlights the state’s commitment to fostering industrial growth and job retention in the area.
The Massena Operations site has a long-standing history, having been in continuous operation since 1902, with an annual production capacity of approximately 130,000 metric tons. The facility’s various operations encompass smelting, casthouse facilities, and the production of both green and baked anodes. The aluminum produced at Massena is utilized across diverse industries, including automotive, aerospace, military, construction, electronics, and packaging.
Currently, Alcoa employs around 550 workers at the Massena site, contributing more than $66 million in direct salaries, wages, and benefits. Additionally, the facility’s operations generate approximately $90 million in contracts with 1,800 U.S. suppliers, demonstrating its substantial economic impact on the region.
William Oplinger, CEO of Alcoa, emphasized the significance of reliable and competitively priced energy for the company’s decision-making regarding future investments. This contract with NYPA not only solidifies Alcoa’s position in the industry but also strengthens the economic foundation of Massena and its surrounding areas.
In summary, the new power supply contract between NYPA and Alcoa is poised to create a sustainable future for the Massena smelting plant, safeguarding substantial employment opportunities and facilitating major investments aimed at modernization and operational efficiency. The agreement underscores the critical importance of long-term partnerships and resource allocation in maintaining the competitiveness of U.S. manufacturing in global markets.
Deeper Dive: News & Info About This Topic
HERE Resources
New Power-Supply Contract Secures Jobs at Alcoa’s Plant
Additional Resources
- CNYBJ: Alcoa & NYPA Ink New Power Supply Contract
- Google Search: Alcoa Massena Power Supply Contract
- North Country Now: Alcoa NYPA Sign Off
- Encyclopedia Britannica: Aluminum production
- NNY360: Hochul Approves NYPA Alcoa Power Deal
- Google News: Alcoa Massena plant economic impact
- Recycling Today: Alcoa Announces $60 Million Investment
- Google Scholar: Alcoa Massena jobs contract
Author: STAFF HERE NEW YORK WRITER
The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
