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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Alaska, Washington to build Arctic Icebreakers

Senator Lisa Murkowski, Alaska, and Senator Maria Cantwell, Washington, have introduced a bill that would authorize the Navy to build up six icebreakers for use by the U.

Launch of First Future Destroyer, Hobart

Speech delivered by the Minister for Defence, Kevin Andrews during the launch of Hobart - the first future destroyer: Thank you for being here on this very important day.

Fincantieri Invests In Camper & Nicholsons

Fincantieri has signed an agreement for the acquisition of a minority stake via capital injection in Camper & Nicholsons International (Camper & Nicholsons), the

Ports

Viking Orders 2 Liebherr Cranes

An LR 1300 with super lift equipment and an LR 1160 crawler crane will strengthen the fleet of Viking Cranes. The Tallinn-based company with branch offices

KPCT Launches New Gulf Service

Containerized volumes are steadily increasing on the East Coast of India. Keeping pace with the growth, Krishnapatnam Port Co. Ltd. (KPCT) now offers a new service to the Gulf sector.

Mayor Garcetti on Ratification of Port Labor Contract

International Longshore and Warehouse Union members have ratified a five-year contract governing pay and work rules at 29 West Coast ports, including those of Los Angeles and Long Beach.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.1219 sec (8 req/sec)