JEFFERSON CITY -- In a decision by Missouri's Public Service Commission on Wednesday, Noranda Aluminum, Inc. was given a lower rate it has long sought.
On Thursday, Noranda's President and CEO Layle K. "Kip" Smith said in a statement the rate decrease was important for the New Madrid plant, which employs about 900 people.
"Securing a reduced rate for our single largest cost is an important milestone in our ongoing journey to structurally improve our cost profile," said Smith. "At full production, the new rate is expected to reduce New Madrid's annual power cost by approximately $17 to $25 million or $0.03 to $0.04 per pound of primary aluminum sold. As part of our comprehensive productivity program, we expect these structural savings to make a meaningful contribution to our near-term performance and cash flow, and to enhance our ability to operate the business sustainably across the aluminum cycle."
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