02/25/2014 11:43 EST | Updated 04/27/2014 05:59 EDT

Alcoa aluminum company reaches power deal with Quebec

Alcoa and the government of Quebec have reached an agreement over electricity rates, saving an estimated 3,000 jobs in the province.

In October, the aluminum company had threatened to close down three of its Quebec facilities after Hydro-Québec said it would hike how much it charges the company for electricity.

At the time, Premier Pauline Marois called the response "alarmist" and unnecessary. 

Today at a news conference in Baie-Comeau, Premier Pauline Marois announced the province had agreed to continue offering preferential rates for the Bécancour and Deschambault facilities until 2030 and for the Baie-Comeau plant through 2036.

In exchange for the preferential rates, Alcoa will invest $250 million over five years to modernize its three Quebec plants.

“The agreement will help Alcoa achieve its goal of moving down the global aluminum cost curve," said Bob Wilt, president of Alcoa Global Primary Products.