| Alcoa to slash more than 15,000 jobs | | | | Alcoa’s Tennessee operations. |
| Editor: From: miningnews Click?53 Date: | | | | Alcoa is also planning to divest four non-core |
| 2009-01-07 10:59:17 | | | | downstream businesses: Electrical and Electronic |
| ALUMINIUM producer Alcoa has announced it will | | | | Systems, Global Foil, Cast Auto Wheels and |
| reduce annual output by 18% and reduce its global | | | | Transportation Products Europe. |
| workforce by 13% in order to reduce capital | | | | The company expects to achieve net proceeds for |
| expenditure in 2009 by 50%. | | | | the sales of around $US100 million ($A138 million). |
| By the end of 2009, the company will have reduced its | | | | Non-critical capital expenditure will be cut to $US1.8 |
| headcount by 13,500, while an additional 1700 | | | | billion, a 50% reduction from 2008. |
| contractors are set to lose their jobs. | | | | The Sao Luis refinery expansion and Juruti bauxite |
| The US-based company will also put a freeze on | | | | mine, both in Brazil, will not be affected, with the |
| salaries and hiring. | | | | company to spend around $US750 million to complete |
| Alcoa president and chief executive Klaus Kleinfeld | | | | the projects during the first half of 2009. |
| described the actions as aggressive but prudent. | | | | In November, Alcoa suspended proposed expansion |
| “These are extraordinary times, requiring speed and | | | | work on the Wagerup aluminium refinery in Western |
| decisiveness to address the current economic | | | | Australia. |
| downturn, and flexibility and foresight to be prepared | | | | In other cost-cutting measures, Alcoa has finalised new |
| for future uncertainties in our markets,” he said. | | | | power agreements for its Canadian operations and will |
| By the end of the first quarter of 2009, Alcoa will | | | | secure raw materials from alternate suppliers to slash |
| implement further smelting reductions of more than | | | | input costs. |
| 135,000 tonnes per annum, taking the total amount of | | | | Alcoa expects the restructure and divestments to |
| reductions in primary aluminium output to 750,000tpa. | | | | save around $US450 million annually before taxes. |
| In October, Alcoa announced production cuts of | | | | In Australia, the company employs 6280 people plus |
| 265,000tpa at its Rockdale smelter in Texas and in | | | | around 1500 contractors, most of whom are in |
| November said it would cut production by a further | | | | Western Australia. |
| 550,000tpa at its Point Comfort, Texas alumina | | | | It is unknown whether the actions will affect Australian |
| refinery. | | | | jobs. |
| The latest production curtailments will affect | | | | |