Alcoa, Ignis close to signing joint funding deal for Spain aluminium plant
MADRID, Oct 16 (Reuters) -Alcoa AA.N said on Wednesday it was "progressing" toward a strategic cooperation agreement with Spanish renewable energy company Ignis to fund the operation of the U.S. metal producer's aluminium plant in northwestern Spain.
Under the proposed deal, Alcoa would contribute 75 million euros ($81 million) and Ignis would make an initial investment of 25 million euros, giving it 25% ownership of the San Ciprian plant in the Galicia region, Alcoa said in a statement.
Pittsburgh, Pennsylvania-based Alcoa said it would fund up to another 100 million euros as needed, while prioritising future cash returns. Any additional funding would be shared under a 75%-25% split between Alcoa and Ignis, respectively.
The potential deal requires the approval of San Ciprian stakeholders, which include the Spanish government and regional authorities in Galicia.
Alcoa has complained for years that steep energy prices in Spain had made its plant uncompetitive, which worsened when European power prices soared to record highs during the COVID-19 pandemic and the war in Ukraine.
Earlier this year, Alcoa started looking to sell 100% of the San Ciprian plant. It said that no viable bid was made despite sharing information with 60 potential investors.
($1 = 0.9207 euros)
Reporting by David Latona; Editing by Leslie Adler
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