Kaiser Aluminum Declares Force Majeure at Its Warrick Rolling Mill Due to Limited Availability… | New

FRANKLIN, Tennessee, July 07 12, 2022 (GLOBE NEWSWIRE) — Kaiser Aluminum Corporation (NASDAQ: KALU) today announced that it has declared a force majeure event at its rolling mill in Warrick (“Kaiser Warrick”) due to limited availability of magnesium used in production. of some of its food and beverage aluminum packaging products, reducing its ability to produce these products today.

As the Company previously disclosed, US Magnesium, LLC (“US Mag”), Kaiser Warrick’s largest magnesium supplier, declared a Force Majeure Event on September 29, 2021. Although US Mag continued to supply approximately 50% of its contractual commitment to Kaiser Warrick, deliveries have recently ceased. Kaiser Warrick was unable to immediately source additional magnesium from alternative sources and began to adjust production levels based on the amount of magnesium currently available and otherwise scheduled for delivery from other suppliers. . Kaiser Warrick is working with its customers to minimize the impact on scheduled deliveries. The Company expects production and deliveries to be reduced by 30% to 40% in the month of July, and by approximately 50% during the remainder of the third quarter, in each case based on deliveries of magnesium currently under contract and assuming that there will be no more deliveries from the United States. Mag. The rolling mill will continue to operate at lower production levels until US Mag resumes deliveries or additional replacement magnesium becomes available for Kaiser Warrick.

Additionally, on July 1, 2022, Alcoa Corporation (“Alcoa”) announced the reduction of one of the three melting lines in operation at its Warrick Operations plant in Indiana due to operational difficulties. While the Company does not anticipate the reductions announced by Alcoa to reduce current or planned production at Kaiser Warrick, ongoing performance issues at Alcoa’s Warrick plant and the resulting impact on the delivery of aluminum meltdown continue to impact the financial and operational performance of Kaiser Warrick and the Company. .

The Company is in the process of assessing the financial and operational impact of recent events leading to its declaration of force majeure and will provide an update during its second quarter earnings call scheduled for July 26, 2022.

Company Description

Kaiser Aluminum Corporation, headquartered in Franklin, Tennessee, is a leading producer of specialty semi-fabricated aluminum products, serving customers worldwide with highly engineered solutions for aerospace and heavy duty, packaging, general engineering, custom automotive and other industrial applications. The company’s North American facilities produce plate, sheet, coil, extrusions, rod, bar, tubing and value-added products, adhering to the traditions of quality, innovation and service that have been key elements of its culture since the company’s inception in 1946. The Company’s shares are included in the Russell 2000® Index and the S&P Small Cap 600® Index.

Information available

For more information, please visit the Company’s website at www.kaiseraluminium.com. The website includes an Investor Relations section in which the Company provides news notifications or announcements regarding its financial performance, including Securities and Exchange Commission (SEC) filings, investor events, results and other press releases. In addition, all of the Company’s filings with the SEC are available through a link to the section of the SEC’s website at www.sec.gov which includes: annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy statements for the company’s annual meetings of shareholders and other statements of information filed with the SEC. In addition, the Company provides webcasts of its quarterly earnings calls and certain events that management is attending or hosting with members of the investment community.

This press release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s beliefs and assumptions based on information available to it at the time where these statements are made. . Kaiser Aluminum cautions that forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements due to a variety of factors. These factors include: (a) the effectiveness of management’s strategies and decisions, including strategic investments, capital expenditure strategy processes and countermeasures implemented to address operational and chain challenges procurement, and the execution of these strategies; (b) general economic and business conditions, including the impact of the global coronavirus 2019 outbreak and governmental and other measures taken in response, cyclicality, relocation, supply disruptions, including disruptions more recent developments resulting from supply and demand imbalances in the magnesium and silicon markets, and other conditions that are impacting demand drivers in the aerospace/high-strength markets, automotive, general engineering, packaging and other end markets the Company serves; (c) the duration of the force majeure and the financial impact of the force majeure on the Company; (d) the impact of the Company’s future earnings, cash flows, financial condition, capital requirements and other factors on its financial strength and flexibility; and (e) other risk factors summarized in the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Form 10-K for the fiscal year ended December 31, 2021. The Company does not assumes no obligation to update any forward-looking statement to conform the statement to actual results or to changes in the Company’s expectations.

Contact with Investor Relations and Public Relations:

Melinda C. Ellsworth

Kaiser Aluminum Corporation

(949) 614-1757

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