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| Alcoa |
$81 Million Joint Venture Formed with Ignis to Reopen San Ciprián Smelter
Renewable Energy and Government Backing Key to Restart Timeline
Alcoa has officially entered a joint venture with Ignis Equity Holdings to revive its long-idled San Ciprián aluminum smelter in Spain. The U.S.-based aluminum producer will invest $81 million for a 75% stake, with Ignis contributing $27 million. This move is part of Alcoa’s broader strategy to restore capacity after the plant was largely shuttered due to soaring energy prices beginning in 2022.
Additional Investment May Follow as Restart Advances
Alcoa has indicated it may invest up to $108 million more, contingent on mutual approval with Ignis. Both companies are also exploring renewable energy deployment at the site to stabilize electricity costs, which were the primary cause of the previous closure.
The restart effort builds on a January 2025 memorandum signed with Spain’s national and regional governments, aimed at streamlining project approvals, labor coordination, and environmental permitting.
Smelter Sale Attempt Failed, Pivot to Local Alliance
Alcoa had previously attempted to divest its Spanish aluminum assets, including the smelter, foundry, and alumina refinery, but those efforts were unsuccessful. The new joint venture signals a strategic pivot toward local cooperation, improving the likelihood of long-term operational viability for the San Ciprián site.
ScrapInsight Editorial Commentary
Alcoa’s renewed push to restart San Ciprián with local partners underscores a broader trend: smelter viability now hinges on low-cost, renewable energy access. As Europe tightens emissions targets and grapples with volatile energy markets, aluminum producers must align operations with sustainable power sourcing. This move may foreshadow more region-specific joint ventures in energy-intensive sectors—and a possible uptick in demand for green scrap feedstock if EAF-aluminum technologies are integrated.
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