Alcoa launches major strategic restructuring, Quinana factory permanently shut down to reshape global production capacity layout

In the third quarter of 2025, Alcoa Corp officially announced the permanent closure of its Kwinana alumina refinery in Australia and plans to include approximately $890 million in restructuring and related expenses.

After this is completed, Alcoa’s global comprehensive refining capacity will be adjusted to 11.7 million tons, marking the substantive stage of its global supply chain optimization strategy.

The closure of the Quinana plant is a key measure taken by Alcoa to respond to changes in the global alumina market supply and demand structure. The factory has gradually reduced its load since early 2024, and the final capacity withdrawal will help alleviate regional cost pressures. Alcoa emphasized in the announcement that capacity optimization will focus on a more competitive asset system, and future investment directions will pay more attention to low-carbon smelting technology and regional supply-demand balance.

The restructuring cost of $890 million mainly involves expenses such as employee placement, equipment dismantling, and environmental remediation. Alcoa stated that although this adjustment puts pressure on short-term financial statements, it will help improve overall profit margins and return on capital in the long run. The company is synchronously accelerating the integration of low-cost mining areas in Guinea, Brazil, and other regions to strengthen its self-sufficiency in raw materials.

The withdrawal of the Quinana plant is expected to reduce the global alumina market supply by about 2.5%, which may exacerbate the tight supply-demand balance of alumina in the Asia Pacific region. According to metal market research firm CRU, the contraction of alumina production capacity outside of China may push the price center upward after 2026, while the shift of the focus of US aluminum production capacity to the Atlantic coast will further affect global trade flows.

Alcoa mentioned in its strategic statement that capacity adjustments are also in response to its 2050 carbon neutrality target. The closure of the Quinana factory will reduce approximately 700000 tons of carbon emissions annually, in coordination with policies such as the European and American Carbon Border Adjustment Mechanism (CBAM).