“It gives Alcoa the opportunity to recommit to its future in Massena – just as hundreds of its employees have already done for much of their working lives with the company – and bolster the viability of these facilities over the long-term”.
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Cuomo was joined by Sen.
MASSENA, N.Y. (AP) Alcoa has backed off a plan to close its smelting operations in northern NY after the state agreed to a series of incentives.
Alcoa announces a three-and-a-half-year deal to keep its smelter in Massena open, and increase its competitiveness.
A deal has been struck to keep 600 jobs at Alcoa’s plant in New York’s North Country. Charles Schumer announced in Massena Tuesday.
The state’s power authority will provide $30 million in power assistance, and the Empire State Development Corporation will provide $38.8 million in capital and operating expenses to modernize the plant, Governor Andrew Cuomo said at a news conference at the plant. It also spells out a $40 million dollar penalty for Alcoa if employment at the plant drops below 600 before March 2019.
Schumer said state leaders will return to the negotiating table in three years to ensure the plant’s continued operations if necessary – though he said market forces could make it moot.
“This agreement strengthens an essential part of the North Country economy and saves hundreds of jobs in the region”.
A new agreement decreases that number to about 80. The move would have put almost 500 people out of work.
“Across the globe, we have been taking measures to curtail smelting and refining capacity that is not competitive to improve our cost profile”, said Roy Harvey, Alcoa executive vice president, said in a statement.
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The agreement is subject to approval by the NYPA Board of Trustees.
