Dive Brief:
- Century Aluminum Co. will restart more than 50,000 metric tons of idled production at its Mt. Holly, South Carolina, smelter, to bolster domestic supplies as Section 232 tariffs hamper aluminum imports, the Chicago-based company said Thursday.
- The primary aluminum producer will invest $50 million in the effort, creating more than 100 jobs and increasing U.S. aluminum production by nearly 10%, according to a news release. The plant is scheduled to achieve full production by June 30, 2026.
- Century Aluminum is also looking to build a new smelter to expand domestic production. CEO Jesse Green said on a Thursday earnings call that it would double the size of the existing U.S. aluminum industry and create more than 1,000 jobs. A site has not been selected yet.
Dive Insight:
The Mt. Holly plant, which has been operating at 75% capacity for about three years, has not operated at full production since 2015. Around that time, weak aluminum prices affected by a global oversupply drove U.S. producers to shutter operations.
At full capacity, the Mt. Holly location can produce up to 230,000 metric tons of aluminum, according to Century Aluminum’s latest annual report. In 2022, the company began operating the plant at 75% capacity following a 2020 project that restored curtailed production.
Century Aluminum said the restart is a direct result of President Donald Trump’s Section 232 tariffs for primary aluminum, which were raised this year to 50% on steel and aluminum imports without exceptions or exemptions. Additionally, the company has seen higher aluminum prices through the first half of the year driven by increases in Midwest region supplies.
Century Aluminum CEO Jesse Gary thanked Trump for his commitment to onshoring manufacturing of critical metals and reducing the nation’s reliance on foreign supplies.
“Our team stands ready to continue leading the resurgence of domestic primary aluminum, starting with bringing our Mt. Holly smelter back to full production,” Gary said in a statement.
At full capacity, the Mt. Holly smelter has a state economic impact of more than $890 million per year, according to Century Aluminum, citing a 2024 study from the University of South Carolina. The average wage is $100,000 for jobs supported by the company.
Trump’s second term has been focused on the idea of revitalizing manufacturing with tariffs to try and increase domestic production after years of globalization, which sent more jobs overseas, but allowed companies to produce goods at lower rates.
In June, Emirates Global Aluminum announced plans to develop a $4 billion primary production plant in Inola, Oklahoma. Century Aluminum is moving forward with its restart at Mt. Holly to remain competitive in a shifting market landscape.
The restart is made possible with the help of the South Carolina Public Service Authority, also known as Santee Cooper. It recently reached a deal to extend Century Aluminum’s contract through 2031 to purchase the additional power for the restart.
Century Aluminum, founded in 1995, has aluminum smelters that it owns and operates in the United States and Iceland, according to its latest annual report. The company also has a carbon anode plant in the Netherlands and a 55% interest in bauxite mining and alumina refining in Jamaica.
In addition to Mt. Holly, it also has smelters in Sebree and Hawesville, Kentucky. Century Aluminum is also looking to potentially sell or restart its idled Hawesville smelter by the end of September, Gary said on the earnings call.
