Alcoa plans to keep open its Forgings and Extrusions division, along with the casthouse, leaving about 220 people of 700 on the job.
The company said the move will help secure hundreds of jobs, though the lightweight-metals manufacturer will continue other planned cuts. WWNY reported rumors last week that a deal was coming together to keep the aluminum smelter open until 2018.
If the price of aluminum improves, Mr. Cuomo said, the subsidies will drop. The NY Power Authority will provide $30 million in assistance and Alcoa will receive $38.8 million in capital funding from Empire State Development.
"Today's agreement helps better position the smelter in light of prevailing market conditions, providing this facility a bridge to a stronger commodity market and maintaining jobs in the North Country", Klaus Kleinfeld, chairman and CEO of Alcoa, said in the release.
"We understand the price of aluminum is down".
Alcoa deal would keep 600 jobs
Alcoa also agreed to face up to $40 million in penalties should it breach or terminate the deal. Schumer said. "The entire community can finally breathe a big sigh of relief and I will continue to engage with the company - and will partner with local leaders, my federal partners, and the Governor to make sure this facility is productive and thriving for years to come".
"We believe it is a cycle", Mr. Cuomo said, "and it will turn around". Alcoa had previously announced that it would end its smelting operation at the end of this year, resulting in a loss of more than 500 jobs. The reductions will further improve the cost position of the Upstream business and ensure competitiveness in a lower pricing environment.
Revised total restructuring-related charges in the fourth quarter will be between $130 million and $150 million after- tax, or 10 to 11 cents a share.
Cuomo and U.S. Sen.
Adele Brings "Water Under The Bridge" To The Tonight Show
Later, Adele performed " Water Under the Bridge " from her new album "25" and talks about her recent appearance on SNL . Adele is hot off releasing her new album, 25, and has been absolutely smashing record sales ! "What a great record".
