From AFX News Limited
SAN FRANCISCO — Alcoa said late Tuesday it is cutting 140 jobs and closing its automotive components plant in Northwood, Ohio, by the end of the year to decrease overcapacity. The aluminum products maker said it plans to take pre-tax charges of about $7 million, with $3 million to be recorded in the third quarter.
“The decision to close this facility was a difficult one and in no way reflects negatively on the efforts of our dedicated workforce,” said Eric Winter, vice president of operations and engineering for Alcoa Advanced Transportation System, in a company statement. “Unfortunately, the excess capacity in our system and the specific capabilities of this facility made this move necessary.”
Alcoa said it is offering affected employees severance and benefits continuation packages and would work with state and local officials to find a buyer for the plant. Shares of Alcoa rose 44 cents to close at $31.25 ahead of the announcement.
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