none
none

Geelong aluminium smelter under threat

31-08-2010
by 
in 
Geelong aluminium smelter under threat

 

US aluminium giant Alcoa has warned it is looking to cut as much as 11 per cent off its global smelting capacity over the next 15 months because of a dramatic fall in prices for the lightweight metal.

The recent announcement has fueled concerns over the future of the ageing Point Henry smelter in Geelong, Victoria.

While Alcoa has made no decision on which of its smelters will be affected by the announcement, Point Henry is one of its worst performers.

The smelter secured a two-year reprieve from closure after receiving government grants in June last year.

Global aluminium prices have slumped by the 33 per cent slump since a peak in 2011.

And the strong Australian dollar has had a major impact on Alcoa’s smelters at Geelong and Portland in western Victoria.

But Portland is a more modern operation and is likely to be less affected by the proposed production cuts, covering 460,000 tonnes of Alcoa's current global output.

In a statement Alcoa said: "The review will include facilities across the Alcoa system and will focus on higher-cost plants and plants that have long-term risk due to factors such as energy costs or regulatory uncertainty."

Alcoa president of primary products Chris Ayers said "persistent weakness" in global aluminium prices had prompted the review. "We need to review every option to maintain Alcoa's competitiveness," he said.

Related news & editorials

  1. 22.02.2018
    22.02.2018
    by      In
    As part of LAND 400 defence bidding, Australia stands to receive international technology that would allow world-leading ballistic armour to be produced in a local environment. 
    If bidding is sucessful, RUAG Australia will produce the cutting-edge ballistic armour for 225 Australian Army Combat... Read More
  2. 22.02.2018
    22.02.2018
    by      In
    As the sheer scale of corporate and private food waste continues to grow as a political and economic issue, more and more groups are stepping up to show just how much our wasteful practices are costing us. 
    The newly formed Australian Food Cold Chain Council aims to address food wastage by tackling... Read More
  3. 22.02.2018
    22.02.2018
    by      In
    Carnegie Clean Energy has received a grant of AU$3 million from the government of South Australia to build a 2MW battery system near Adelaide.
    The 2MW/500kWh storage project will be installed on the site of the former General Motors Holden manufacturing facility in Elizabeth.
    The grant was awarded... Read More
  4. 22.02.2018
    22.02.2018
    by      In
    Even as large automotive brands pulled out of Australian manufacturing, truck manufacturer Iveco has been pushing into the Australian market, increasingly selling and manufacturing on-shore. 
    Along with Volvo/Mack and Kenworth/DAF, Iveco is one of a few truck manufacturers still building in... Read More