January 7, 2009

Alcoa of Australia’s position following Alcoa Inc’s announcement today (6 January 2009 USA)

The announcement made by Alcoa Inc today (6 January 2009 USA) largely impact Alcoa’s operations outside of Australia, but also reflects actions that have already been taken and are underway in Australia.

In November Alcoa of Australia announced it had suspended work on the proposed expansion of the Wagerup Refinery (Wagerup 3) until market conditions improve.
 
Also in that month as part of Alcoa Inc’s curtailment of 350,000 tonnes of aluminium production across its global smelting system, Alcoa of Australia curtailed Portland Aluminium’s production by less than 5 per cent.
 
During December Alcoa of Australia announced to employees a decision to reduce contractors and consultants, impose salary freezes and capital reductions, restrict travel, and minimise the number of new people hired.
 
While Alcoa of Australia will not be hiring additional people, the company has no plans at this stage to reduce our current Australian workforce.
 
Alcoa of Australia’s Managing Director Mr Alan Cransberg said: “We have excellent businesses here in Australia which have been in a strong position for a number of years. In order to maintain our competitive position during these economic times and come out stronger, we’ve got to be aggressive about how we manage this business, in terms of making sure that we are benchmark in costs management, in people productivity and the efficient use of raw materials and other resources.
 
“These are uncertain times, but what is certain is that we have talented people running these businesses and we are all focussed on ensuring the business remains strong, competitive and sustainable for the future.”
 
ENDS
 
For further information:
http://www.alcoa.com/global/en/news/news_detail.asp?pageID=20090106006407en&newsYear=2009
http://www.alcoa.com/australia/en/news/releases/Wagerup3_on_hold.asp
http://www.alcoa.com/australia/en/news/releases/alcoa_to_curtail_portland_aluminium_production.asp
 
 
Editors note:
Please be advised Alcoa of Australia will not be providing a spokesperson on this issue, as it is an Alcoa Inc global announcement.