Alcoa has officially communicated to its staff that it will execute a collective layoff that will affect

524 employees

and will proceed to hibernate the electrolysis tanks at the San Ciprián (Lugo) aluminum plant.

The announcement comes after breaking the negotiation with the Government to sell the factory to another interested group or to the State Society of Industrial Participations (Sepi) for one euro.

The group expects the orderly hibernation of the vats to conclude in the first quarter of 2021 and will keep 99 employees operating part of the smelter.

The closure announcement puts even more pressure on the government, which is studying different initiatives to take control of the plant and avoid the impact that its closure would have on the region.

In Galicia, a common political front has been created to demand that Pedro Sánchez take control of the situation.

"Based on what we have shared with stakeholders throughout this process, the unfortunate reality is that the San Ciprián aluminum plant is not competitive and we do not anticipate that its significant structural issues will change," said the president and counselor. Alcoa delegate, Roy Harvey.

The company estimates losses at five million per month for continuing to operate the facility.

"While we have explored different options in recent months, restructuring is necessary to halt continued economic losses. We understand this is a difficult outcome and we are committed to reducing the impact on our employees as we work together on the restructuring of the plant safely and we continue to comply with all regulations, "said the North American manager in a statement.

During this year and until September 30, the San Ciprián primary aluminum plant has recorded losses of approximately 45 million dollars.

In 2018 and 2019, their combined losses amounted to $ 126 million, according to the group.

Alcoa will pay compensation of 30 days per year worked up to a maximum of twelve monthly payments to the affected employees and will contract external outplacement plans for them.

According to the criteria of The Trust Project

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