Alcoa reaches Quebec power deal, drops potline for Baie-Comeau

|By:, SA News Editor

Alcoa (AA -0.9%) says it reached a deal to renew its existing power supply agreements in Quebec, but no longer plans to build a new potline to replace the two it closed at its Baie-Comeau facility last year.

AA now plans to invest $250M at its Becancour, Deschambault and Baie-Comeau facilities in Quebec over the next five years, and shift some of Baie-Comeau's production to make more of the kinds of aluminum used by automakers.

AA had warned that if Hydro-Québec went ahead with a planned rate hike, the three smelters would no longer be competitive.