Aluminum producer Alcoa Corp. said it plans to sell some of its Massena East industrial site in New York for up to $315 million as part of a strategy to offload dormant assets for cash.
Alcoa has reached a definitive agreement with a buyer and expects to receive the first $50 million to $65 million when the deal closes within the next six months, William Oplinger, president and CEO, said on an earnings call Thursday. The remaining cash is expected before the end of the decade, but the agreement allows up to seven years for commissioning.
The Massena East deal is the first to support Alcoa’s strategy to generate between $500 million and $1 billion from “asset monetization” by 2030, Oplinger said. He did not disclose the buyer’s name, but told analysts that a data center would be built on the property. Oplinger said two other deals are in the works that align with Alcoa’s 2030 strategy.
In April, Alcoa was in advanced talks to sell a portion of the Massena East site to bitcoin firm New York Digital Investment Group, with a deal expected “in the middle part of this year,” Bloomberg reported.
The site has sat idle since 2014 when the company shut it down due to high operating costs and global competition. Alcoa’s Massena West site is still operating.
Update on the South32 deal
Alcoa is on track to close its acquisition of South32’s bauxite, alumina and aluminum assets in Australia, Brazil and South Africa for $4.1 billion during the first half of 2027.
South32 shareholders on Thursday approved the sale of the assets, known as AliGroup. Additionally, Alcoa completed $2.6 billion in debt financing last month to put towards the $3.1 billion cash portion of the deal. It first announced the acquisition in July.
Oplinger said he met with South Africa President Cyril Ramaphosa and other stakeholders in the country earlier this month to check on the regulatory approval process.
“We have made meaningful progress towards closing,” he said.
Metals prices fluctuate
Aluminum prices have declined from recent highs, affecting Alcoa’s third quarter earnings.
The company generated $3.7 billion in revenue, down nearly 7% from the previous quarter. The company attributed the decline to lower shipments and prices in its aluminum segment. Meanwhile, its alumina segment, which accounts for bauxite mining and refining into smelter-grade raw materials, saw third-party sales increase on higher prices and shipments.
Oplinger said the global alumina market tightened outside of China, causing the alumina price index to increase to $370 per metric ton. He said the company expects “further tightening” next quarter and into 2027, citing curtailments, project delays and uncertainty as Indonesia ramps up smelter capacity.
“For Alcoa, strengthening alumina market conditions and improved operational execution create meaningful upside,” Oplinger said.
In the aluminum market, prices weakened somewhat but remain historically elevated. Oplinger said production is recovering as smelters in the Middle East restart, but uncertainty remains regarding when it will reach pre-conflict levels. In North America and Europe, prices have moderated but remain supported by low metal inventories and regional deficits, he said.
Outlook
Alcoa maintained its annual guidance for its aluminum and alumina segments. CFO Molly Beerman said the company expects to see continued momentum from the third quarter, including higher production and shipments across both segments.
She also noted that higher input costs from elevated market prices and planned maintenance could affect results, but “underlying performance remains very strong headed into the final quarter of the year.”
Alcoa projected its alumina production and shipments to be 9.5 to 9.6 million metric tons and 11.5 to 11.6 million metric tons, respectively. It also projected its aluminum production and shipments to be 2.4 to 2.6 million metric tons and 2.6 to 2.8 million metric tons, respectively.
No revenue or income estimates were disclosed.
Worker death investigation
Alcoa recently finished an internal investigation of a worker’s death that took place Sept. 16.
The company said an employee was found unconscious at its Alumar smelter in Brazil and transported to a nearby hospital for medical treatment.
The incident was determined to be a “work-related fatality” linked to lighting maintenance at Alcoa’s carbon plant. The company said it is working with partners and authorities on their investigations.
Oplinger said he’s “committed to ensuring we learn from this event and take the actions necessary to strengthen our safety culture, reduce risk across our operations and hold ourselves accountable to the highest safety standards.”
