Hundreds of workers are set to lose their jobs at an alumina refinery in West Australia after US company Alcoa announced it would cut production by almost a hundred percent in 2024.
The company said it would begin the process of reducing production at its Kwinana refinery in the second quarter of the year.
For over 60 years, the company has been operating in WA. About 550 of the facility’s 800 workers will lose their jobs by the end of the year as the plant completely stops producing alumina.
However, some of the operations will continue until 2025. This will reduce the workforce to around 50.
It’s believed that around 250 contractors will also be affected by the plant’s reduction
. The Kwinana facility, which is owned by the company, has a production capacity of 2.2 million metric tonnes annually.
Since January this year, it has only been able to operate at around 80 percent of its capacity.
According to Matt Reed, the decision to reduce production was based on various factors.
The company noted that the market conditions were the main factor that prompted the decision to reduce production.
Mr. Reed acknowledged the impact of the decision on the workers, the community, and the company’s business partners.
In a statement, the company thanked the workers and contractors for their continuous support over the years.
It also noted that the Kwinana facility has contributed significantly to Western Australia’s economic development.
However, the Premier of WA, Roger Cook, said that the company needed to do more to help its employees during the transition.
The government will provide assistance to the workers to re-train and look for new jobs in the region.
Mr. Cook and Mr. Reed also noted that the company would work with the employees to help them find other opportunities.