CHICAGO, IL–(Marketwired – Sep 30, 2015) – Century Aluminum of Kentucky, a wholly-owned subsidiary of Century Aluminum Company (NASDAQ: CENX), today announced that it expects to continue to operate its Hawesville, Kentucky smelter at approximately 40% of capacity (two potlines) following October 24, 2015. Century had previously announced its intent to curtail 100% of its Hawesville operations beginning on October 24th, but now will only reduce its operations to 40% of capacity.
The remaining operations at the Hawesville smelter will primarily produce high-purity aluminum and provide molten metal to local customers. Continued operations at 40% of capacity will be dependent on acceptable commercial conditions, including aluminum prices, product premiums and operating costs.
“We are pleased to be able to announce that partial operations will continue at Hawesville,” commented Michael Bless, President and CEO. “Hawesville’s ability to produce high-purity aluminum enables the smelter to produce a unique product that will hopefully allow the plant to survive, albeit at significantly reduced production levels, in today’s market conditions.
“We regret the need to curtail any of Hawesville’s operations, which cannot compete against the improper export of unfairly-subsidized Chinese aluminum products. The continued expansion of Chinese aluminum capacity coupled with the significant increase in unfairly-subsidized Chinese aluminum exports has caused the collapse in industry pricing and put this excellent plant in jeopardy. These issues must be addressed immediately,” Bless said.
In connection with the announcement, Century Aluminum of Kentucky issued a new conditional federal Working Adjustment and Retraining Notification Act (WARN) notice to employees who will be impacted by continuing a two potline operation. The new WARN notice informs those employees that the remaining two potline operation is expected to be curtailed if certain high purity production levels are not achieved or if there is a material adverse change in commercial circumstances. The previous WARN notice issued on August 25, 2015 remains in effect for the remaining employees.
About Century Aluminum
Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century’s corporate offices are located in Chicago, IL.
Visit www.centuryaluminum.com for more information.
Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:
Atli B. Gudmundsson, Senior Manager — Corporate Finance, Landsbankinn hf.
Steingrimur Helgason, Director — Corporate Finance, Landsbankinn hf.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to the “safe harbor” created by section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are statements about future, not past, events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements. These forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “forecast” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” or “may.” Forward-looking statements in this press release include, without limitation, statements with respect to our future plans and expectations regarding the operation of the Hawesville plant and the effects of any curtailment on the financial and operating performance of the Company and its subsidiaries; our business objectives, strategies and initiatives, including our ability to achieve targeted product mix and production levels, productivity improvements or cost reductions; future global and local financial and economic conditions; our assessment of the aluminum market and aluminum prices (including premiums). More information about the risks, uncertainties and assumptions affecting the Company can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. We do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.