Alcoa plans to raise the production capacity by 10pc at its Deschambault aluminum smelter in Quebec over the next two years, through an C$85mn ($64.3mn) investment.
The project at the Deschambault-Grondines-based plant is targeted to be completed by the end of the fourth quarter of 2021, the company said.
As part of the investment, Alcoa will upgrade equipment at the facility, which will allow it to better meet short- and long-term demand, increase aluminum production and lower costs.
The Deschambault smelter currently has an annual production capacity of 260,000 metric tons (t) of T-ingots, so the investment would add roughly 26,000t for an eventual total of 286,000t.
The company is eligible to receive a C$10mn reimbursement grant from the Canadian government, under a government initiative to support the aluminum sector in Quebec and steel and aluminum sectors across the country.
Other major steel and aluminum producers including EVRAZ North America, Algoma Steel and ArcelorMittal Canada have received similar supportive investments over the last year from the Canadian Office of Minister of Innovation, Science and Economic Development.
The Deschambault smelter has been in operation since 1992 and was acquired by Alcoa in 1998. The facility employs more than 520 people and serves as a training hub for the company.
