[ferro-alloys.com]UK-based Liberty House Group has emerged as a strong candidate to buy Alcoa's 228,000 mt/year aluminum smelter at San Ciprian, northwest Spain, with the two companies given a window of around seven weeks to reach an agreement in exclusive talks, the Spanish government said Aug. 11.

The formalization of talks between the two parties comes amid a series of proposals to guarantee ongoing industrial activity and jobs at the plant, the regional (government) Xunta de Galicia and Spain's Industry Ministry said in a joint statement.

These include an extension to Sept. 28 of the current negotiation period related to a proposed 500 to 600 lay-offs, during which time Alcoa has agreed to negotiate an exclusive deal for the plant with Liberty House while maintaining activity at the plant.

Alcoa told S&P Global Platts Aug. 12 that a proposal will be debated Aug. 13 in a meeting with the works council. Liberty House declined to comment Aug. 12.

The companies have been given a deadline of Sept. 27 to reach an agreement, while a commission will also be formed between the Xunta, Ministry, and union representatives to track progress.

The formal consultation period regarding collective dismissal at Alcoa's 228,000 mt/yr San Ciprian, Spain aluminum smelter ended with no agreement between the company and workers, Alcoa announced Aug. 7.

That left Alcoa with 15 days to announce a decision regarding the future of the plant, where it has been negotiating lay-offs for up to 600 workers at its aluminum plant.

The company said it offered several proposals to the workers' representatives during the process, including a temporary dismissal through a Spanish social program known as ERTE for two years with the potential for a restart, and an offer to conduct a sales process for the aluminum plant. All offers were rejected, Alcoa said.

The San Ciprian site has both an aluminum plant and alumina refinery. The alumina refinery was not included in the consultation process.

Alcoa last year sold its other two Spanish smelters, the 93,000 mt/yr site at Aviles and the 87,000 mt/yr plant at La Coruna to Swiss Group Parter Capital, whose subsidiary Alu Iberica was contacted by the government in June to give information about security of employment and associated CO2 subsidies.

Liberty has significantly expanded its aluminum interests over the last two years. Its aluminium assets, including Europe's biggest (280,000 mt/year) aluminium smelter in Dunkirk, France, bought from Rio Tinto, the UK's sole smelter at Fort William, Scotland and downstream assets have consolidated into the recently-formed Alvance Aluminium Group.

(S&P Global Platts)

• [Editor:王可]