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Alcoa–Hatch Northeast Alliance

Alcoa–Hatch Northeast Alliance

A long-standing and successful partnership

Alcoa Global Primary Product | Canada | 2000–ongoing

1.6 million

hours worked with 0 LTIs

Achieved >25%

of the annual EPCM fees in cost savings

Achieved 90%

of the schedule milestones over a 15 year period

C$100 M/y

approximate value of portfolio

Challenges

  • Alcoa required an alliance partner to deliver ongoing EPCM services and portfolio management.
  • There is a need to deliver projects that directly contribute to keeping the workplace safe, encouraging environmental initiatives, and meeting business objectives.

Solutions

  • We provide a full alliance partnership, delivering EPCM and portfolio management for everything from major projects to operational performance services.
  • We maintain a value register of any savings identified during the planning or execution of work, covering items within project scope and beyond.
  • We provide monthly cost forecasts of capital expenditures that are 90% accurate to help optimize Alcoa cash flows.
  • We provide services to four sites: three in Québec, Canada and one in Lake Charles, USA; and four other previous sites in the USA, Iceland, and Québec.

Highlights

  • An average of 150 people, and as many as 200, work full time in the alliance between Hatch's Montréal office and four of Alcoa's remote operating sites.
  • In 2015, capital-portfolio processes optimized front-end loading, helping Alcoa save USD 50 M in projects not aligned with its business objectives.
  • In 2015, the cost-savings have reached the equivalent to 157% of our annual consulting fees
  • Several-hundred projects have been completed since the alliance was created.
  • Achieved Client Satisfaction level of >90% for the last 3 years

“I wish to take this opportunity to mention that the work carried out over the first three years of this contract has been done brilliantly. The quality of the work executed by your employees allows us to focus on bringing the same level of excellence to the other regions where the Smelting business unit is established. You are indeed an example to follow, and I am very proud.”

Louise Pearson | Smelting Capital Manager, Alcoa Global Primary Product

Project numbers

1.4 million hours worked with 0 TRIs
90% ratio “TIC/approved amounts”
USD 50M CAPEX to refurbish and install 11 rectifier groups
USD 62 M CAPEX to rebuild baking anode furnace at the Deschambault smelter
USD 40 M CAPEX to rebuild baking anode furnace at the Bécancour smelter
USD 50 M CAPEX for casting modernization
USD 20 M CAPEX to supply and install a new transformer, T3
USD 15 M CAPEX to supply and install a new transformer, T1
USD 22 M CAPEX to replace firing frames at two sites
USD 27 M CAPEX to replace pot-control systems at two sites
USD 28 M CAPEX for a technology validation test

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