our business
 
plan for management of portland aluminium through downturn
In the face of continued global market softness, Portland Aluminium is curtailing smelting production further, bringing the total smelting reduction to 15 per cent of production by July this year.
 
The business will also work consultatively with employees, unions, contractors and suppliers to achieve an overall 10-15 per cent cost reduction by the end of 2009.
 
Last month, the joint venture partners of Portland Aluminium independently elected to reduce production by an additional 38,000 tonnes by 1 July 2009*,  bringing total production at the smelter to 305,000 tonnes.  This is in addition to Alcoa of Australia’s announcement in December 2008, to curtail 15,000 tonnes of production as part of an effort to match production with demand across the globe. Alcoa of Australia’s curtailments will be implemented as part of Alcoa’s previous global announcement to reduce global production by 850,000 mtpy.
 
The units of production being curtailed are linked to overall market conditions and high energy costs associated with these units of production.
 
Alan Cransberg, Managing Director of Alcoa of Australia, said the additional curtailment and reduction in controllable costs exemplify the extraordinary measures businesses are taking to stay strong through the economic downturn and softened market demand.
 
“Portland Aluminium has been a strong and high performing business but, as with many other businesses around the world, we are facing economic challenges which require us to take decisive action now for a strong business in the future.”
 
 "These times are not easy on anyone but we will do our best to minimise the impacts on our people, our contractors, our suppliers, and our communities. We will work consultatively with these groups to identify opportunities to reposition the business for the long-term, to ensure we emerge stronger as the economy recovers,” said Mr Cransberg.
 
“We want to avoid job losses wherever possible, so we will be trying to use a range of workforce initiatives with our people to lower costs and manage through this downturn.
 
“Portland Aluminium’s long-term future remains bright. However in the current economic environment and with the cost impacts associated with an impending carbon pollution reduction scheme, it’s critical we focus our efforts on continuing to rapidly reduce our costs in the short-term while working together to meet these challenges for a sustainable long-term future.”
 
* Alcoa of Australia proportion – 14,000 tonnes annualised, CITIC proportion- 12,000 tonnes annualised, Marubeni proportion – 12,000 tonnes annualised)

about portland aluminium
The Portland Aluminium smelter, located 5 kilometres south of Portland in South West Victoria, is an unincorporated joint venture project between Alcoa of Australia Limited (45%), Eastern Aluminium (Portland) Pty Ltd (10%), CITIC Nominees Pty Limited (22.5%) and Marubeni Aluminium Australia Pty Ltd (22.5%).

Eastern Aluminium (Portland) Pty Ltd is a wholly owned subsidiary of Alcoa of Australia Limited. Alcoa Portland Aluminium Pty Ltd, also a wholly owned subsidiary of Alcoa of Australia Limited, manages the day to day operation of the smelter on behalf of the participants.


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