Under the leadership of strategic planning, Alcoa's upstream industry has achieved good results. Since 2007, the company has reduced production by 28% (1.2 million tons) to increase its competitiveness in the global market.
In the third quarter, the company closed its aluminum plant with a capacity of 190,000 tons at PointHenry and announced plans to permanently close the Portovesme smelter in Italy, reducing the company's total capacity by 150,000 tons. On the other hand, Alcoa reached an agreement with Canadian company Sural Laminated Products to acquire a bar processing plant with a capacity of 90,000 tons in Quebec.
After-tax operating income (ATOI) for the third quarter was $245 million, an increase of $148 million from the previous quarter and an increase of $237 million from the same period last year. The actual sales price in the third quarter was $2,538, an increase of 11% from the previous quarter and a 16% increase from the same period last year. These increases are mainly attributable to lower alumina costs, upgrades in Saudi Arabia's aluminum plants to increase production efficiency, electricity sales and real price increases, and favorable exchange rates.