ALCOA will close its Point Henry aluminium smelter and two rolling mills, leaving almost 1000 people out of work.
The Point Henry smelter will close in August, throwing 500 workers at the Geelong plant out of jobs.
An adjacent rolling mill and a second mill at Yennora, NSW, will add to the sense of gloom engulfing Australian manufacturing. The two mills employ about 480 people.
Following last week’s shock announcement by Toyota that it would end car production in 2017 — effectively ending car making in Australia — Alcoa this morning informed the New York Stock Exchange that the 40-year-old Point Henry smelter had no prospect of becoming financially viable.
The plant has been under review by the company since February 2012. A federal and state government assistance package extended the life of the smelter till this year.
“We recognise how deeply this decision impacts employees at the affected facilities and are committed to supporting them through this transition,” Alcoa chairman and chief executive Klaus Kleinfeld said.
“Despite the hard work of the local teams, these assets are no longer competitive and are not financially sustainable today or into the future.”
Alcoa Australia chief executive Alan Cransberg is this morning informing workers at the smelter of the decision. A press conference has been scheduled for 10.30am at the Point Henry plant.
Alcoa said a ‘’comprehensive review found that the 50-year-old smelter has no prospect of becoming financially viable’’.
It said the two rolling mills served the domestic and Asian can sheet markets which have been impacted by excess capacity.
“These are hard decisions to make,” said Alan Cransberg, Managing Director, Alcoa of Australia Limited. “We understand how difficult this is for our employees and their families, our contractors, suppliers and community partners.
‘’Everyone has worked hard to improve the competitiveness of the smelter and rolling business. ‘’They are part of a proud history of Alcoa in Australia over the last 50 years and part of the significant contributions we have made to the Australian economy and local communities. We appreciate the ongoing support of the Australian and Victorian governments and will continue to work closely with all levels of government, our employees, unions and community stakeholders to manage through these changes.”
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