New York Governor Andrew M. Cuomo announced an agreement has been reached with Alcoa that would preserve 450 jobs at the aluminum company's smelting plant in Massena, New York.
According to the Governor’s Office, the announcement “builds on 2018 Agreement with Arconic that Secured 145 additional jobs at the same site in Massena.”
The new seven-year agreement is subject to approval by the New York Power Authority Board of Trustees; the Governor Cuomo is recommending the Board vote in support of the proposed deal at its meeting on March 26. The new contract provides Alcoa with a 240-megawatt low-cost hydropower allocation from NYPA's St. Lawrence-Franklin D. Roosevelt Power Project through 2026. The power rate is indexed to the price of aluminum and will increase or decrease depending on the market price of aluminum.
"Alcoa is pleased to have reached an agreement with NYPA that provides the Massena smelter with competitively priced energy for the next seven years," said Tim Reyes, President of Alcoa Aluminum. "While the global aluminum industry faces numerous challenges, securing competitive and reliable power is essential for supporting the facility's future. We thank Governor Andrew Cuomo and U.S. Senator Chuck Schumer for their support during this process and NYPA for its continued cooperation."
Gil C. Quiniones, NYPA President & CEO, said, "Ensuring that this contract agreement extended into the future has been a top priority for Governor Cuomo and the Power Authority. Alcoa is an anchor to the North Country economy and it is critical to help keep the facility operating and employing hundreds of regional workers."
“The new agreement, between Alcoa and the New York Power Authority, extends the previous contract, which expires at the end of the month, through 2026. That contract had included the protection of 145 jobs that are now supported by Arconic, which separated from Alcoa in 2016 but maintained operations at the same site,” the Governor’s office said. In December 2018, the Governor announced that Arconic would maintain its workforce through 2028, ensuring a commitment of roughly 600 jobs total at the smelting facility.
"This agreement announced today secures hundreds of jobs at Alcoa, continues the upward momentum of the North Country and builds on New York's thriving economy," Governor Cuomo said. "Alcoa has once again committed itself to Massena for the long-term through this hallmark agreement, which will protect its workers and the state investments made to the region and the facility for years to come."
"This agreement with Alcoa will preserve hundreds of jobs and extend the company's operations in Massena," said Lieutenant Governor Kathy Hochul. "Alcoa's commitment in New York State will maintain the workforce in the area and continue to strengthen the economy of the entire North Country region."