Port of Tacoma to Purchase Kaiser Aluminum Smelter

Friday, December 20, 2002
The Port of Tacoma Commission has approved a contract with Houston-based Kaiser Aluminum to purchase the company's aluminum smelter located near the Port for an initial cash payment of $12.1 million.

The transaction includes approximately 96 acres and related structures located approximately four miles east of downtown Tacoma in the Tideflats industrial area and adjacent to the Blair Waterway, which the Port is re-developing for container terminal use. The agreement is subject to approval by the U.S. Bankruptcy Court for the District of Delaware. Subject to this approval, Port officials expect to close the transaction in the first quarter of 2003. Under the terms of the transaction, the Port of Tacoma will conduct any necessary demolition and environmental remediation that may be required. In anticipation of this potential cost, approximately $4 million of additional funds will be placed in escrow. Any portion of these escrowed funds not required to meet certain regulatory requirements will be paid to Kaiser as additional proceeds of the sale. "The Port has a successful record in the clean-up of industrial lands and putting them back into productive use," said Port of Tacoma Commissioner Clare Petrich. Activity at Kaiser's Tacoma facility was curtailed in 2000. When at full operation, the facility employed 350 and was capable of producing about 73,000 metric tons of aluminum annually. Most of the Kaiser employees are eligible to receive -- or already have elected to receive -- retirement benefits under the terms of Kaiser's retirement plan for salaried employees or under the terms of a labor agreement with the United Steelworkers of America. According to Jack Fabulich, President of the Port of Tacoma Commission, the purchase is a continuation of the Port's commitment to investing in the community. "Strategic acquisitions like this are essential to expanding the capabilities of the Port, which bolsters the regional economy and produces jobs for Pierce County." Kaiser President and Chief Executive Officer Jack A. Hockema said the transaction is part of Kaiser's ongoing objective to sell non-core assets and to further strengthen the company's liquidity. "The Tacoma smelter has generated significant economic value locally and regionally for more than 60 years. "The aluminum industry in which Tacoma thrived for so long has changed and, clearly, so has the Northwest power environment," continued Hockema. "After much study, we concluded that (Kaiser's Tacoma smelter) simply cannot compete with the much larger, newer, and more efficient smelters -- generally located outside the United States -- that dominate the world market today. We salute the many employees, customers, suppliers, and others who shared in Tacoma's rich history."

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Damen Outfitting First of Nine Bahamas Patrol Boats

The first of nine Damen Stan Patrol 3007s ordered by the Royal Bahamas Defense Force has arrived at Damen Shipyards Gorinchem in the Netherlands for outfitting.

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

New Chinese Shipyard Launches First Ship

The new shipyard facility of Honghua Offshore Oil & Gas Equipment Company in Jiangsu, China, has launched its first ship, an IMT982 Platform Supply Vessel. The vessel,

Ports

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Costa Rica Approves APM Terminals Project

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said on Friday Costa Rica's environment agency had approved the construction of its Moin Container Terminal project.

 
 
Maritime Contracts Maritime Standards Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2271 sec (4 req/sec)