The Peru Gazette

Alcoa agrees to maintain a minimum of 500 full-time jobs

NYS News Release, Oct. 22, 2205 – Governor Kathy Hochul today announced a new power supply contract between the New York Power Authority (NYPA) and Alcoa, a leading aluminum producer and one of the North Country’s largest employers. The contract includes a commitment of $30 million in capital investments and supports 500 jobs at Alcoa’s Massena Plant for the next 10 years.  In addition to the contract, Alcoa is investing nearly $60 million through 2028 to rebuild and modernize a portion of the plant. This investment is made possible by the new energy contract as well as a $5.2 million capital grant and $1 million in Excelsior Jobs Program tax credits from Empire State Development (ESD). This improvement will enable process stability and operational efficiency.

“By securing good paying jobs and fostering investment, this agreement ensures Alcoa will continue to be a major presence in Massena while supporting New York families and communities,” Governor Hochul said. “The aluminum manufacturing industry has played a significant role in the nation’s economic development, and New York’s Alcoa facility has been at the forefront, driving economic growth and opportunity in the North Country.” 

Today’s announcement of a signed contract by Alcoa and the Power Authority follows approval of the final contract terms by the Power Authority’s Board of Trustees and Governor Hochul. The contract includes a 240-megawatt (MW) allocation of low-cost power through its Preservation Power program to Alcoa for its Massena Plant in St. Lawrence County. This power allocation will support Alcoa’s operations through March 31, 2036, with options for two additional five-year extensions, contingent on maintaining a minimum of 500 full-time equivalent jobs and increased capital investments. Alcoa also has agreed to invest a minimum of $30 million in the plant’s operation over a period of ten years. If market conditions permit, Alcoa may extend the contract an additional ten years which would foster capital investments totaling $145 million over a 20-year period.

Key Details of the Alcoa Contract: 

• Power Allocation Quantity: 240 MW of low-cost NYPA hydropower to be provided through March 31, 2036. 
• Employment Commitment: Alcoa will maintain a minimum of 500 full-time equivalent jobs at its Massena West Plant, an increase from the previous commitment of 450 jobs. 
• Capital Investment: Under the agreement, Alcoa will invest at least $3 million annually at the facility, with a total minimum investment of $30 million over the initial 10-year term. Further, Alcoa will have the option to extend the contract by two additional five-year terms if it makes investments of $70 million by 2035 and an additional $60 million by 2040.
• Plant Modernization: In addition to the contract, Alcoa is investing nearly $60 million through 2028 to rebuild and modernize Massena Operations’ anode bake furnace, a key component of the aluminum smelting process.

New York Power Authority Chairman John R. Koelmel said, “The New York Power Authority’s renewal of our partnership with Alcoa is a testament to our commitment to driving economic development across New York. By providing low-cost hydropower, we are ensuring that Alcoa remains competitive so that it can continue its operations, invest in its facilities, and retain family-sustaining jobs in the North Country.”

New York Power Authority President and CEO Justin E. Driscoll said, “Alcoa has been a vital part of the North Country economy for more than 120 years. With Governor Hochul’s support, this new contract with one of the Power Authority’s oldest customers secures essential jobs and significant capital investments in the region. We are proud to continue our partnership with Alcoa and to support their growth and investment in the community.”

Alcoa President and CEO William F. Oplinger said, “We are proud to make aluminum in New York and the United States. Long-term, competitively priced energy enables Alcoa to proceed with this important investment that will help us meet the demands of today while planning for tomorrow. We are extremely pleased to have worked with NYPA and ESD to achieve this outcome for our Massena Operations, which will bring economic benefits to the region and sustain American manufacturing.”