Alcoa in Australia
 
September 7, 2006

Announcement of Alcoa’s new Pinjarra office

By Wayne Osborn, Managing Director, Alcoa of Australia
Pinjarra, Western Australia
7 September 2006

 
Distinguished guests, ladies and gentlemen.
 
Good morning and welcome.
 
Our function today takes place in a unique local community – an area rich in its Indigenous and European history and people.
 
A significant part of the Peel’s history is this land’s traditional owners and I would like to take this opportunity to acknowledge the Noongar people and in particular Mr Joe Walley.
 
The Peel region also holds a special place in the history of Western Australia. It boasts some of WA's most famous heritage sites and was one of the State’s first colonial settlements established in 1834 by Sir Thomas Peel.
 
Since then the Peel has played an important part in the development and prosperity of Western Australia.
 
The region is a major contributor to WA’s economic and cultural success. It hosts a range of industries such as tourism, forestry, manufacturing, retail, construction, agriculture, fisheries and of course, alumina.
 
The development of the region has led to it becoming the state’s largest population outside the Perth Metropolitan area.
 
And the Peel continues to show a population growth rate almost double that of the rest of the State – it really is a place that is moving ahead and a place of the future.
 
As this region has grown, so too has Alcoa’s partnership with the Peel, which began in 1963 with the construction of our Kwinana refinery. 
Our Pinjarra refinery was established in 1972 and Wagerup in the 1980s.  Alcoa operates bauxite mines at Huntly and Willowdale. 
 
Today the Peel is home to the largest integrated alumina refining system in the world and hosts one of the most efficient alumina refineries in the world.
 
This region has driven the development of Australia’s aluminium industry and is a critical part of the global industry.
 
Alcoa is the world’s largest alumina producer.  We produce almost 9 million tonnes of alumina in the region each year.  Putting this in context, this represents almost half of Australia’s total alumina production and 13 per cent of total world demand.
 
From the Peel and South West, Alcoa exports to the world’s fastest growing markets including China.  We account for 8 per cent of WA’s total exports.   This activity contributes to the local economy.  For every export dollar we earn, 80 cents stays in Australia.  Alcoa distributed over $A3.4 billion in Australia last year.
 
Our investment in Australia has grown significantly, now totalling over $A12 billion.  The multi-million Pinjarra refinery upgrade and the proposed Wagerup refinery expansion will continue that trend and further consolidate the Peel as a global producer of alumina.
 
The relocation of 100 business support services employees to a custom built, state-of-the-art facility here in Pinjarra will also consolidate the region as a ‘centre of excellence’ for the alumina industry globally.
 
Alcoa, in partnership with owner and developer Pindan and designers Hames Sharley, is keen to demonstrate our commitment to the region and to Western Australia by locating essential support services close to our operational centres.
 
The benefits to the local community and the Peel region as a result of moving our business support functions to Pinjarra are many.
We expect that opening of a new office here will create opportunities for Pinjarra and the Peel region including:
 
  • Increased local expenditure
  • Employment opportunities associated with office construction
  • Ongoing business and employment opportunities into the future
  • Community building through more people living and working locally and
  • Improved communications, relationships and engagement with local communities.
 
Already our presence in the community has benefited many well known regional names such as Pinjarra Engineering, Spiers Earthworks & Plant Hire, the Murray House Resource Centre, Tuckey’s Hardware, J&ED Moores and Twigz Restaurant but it’s not all about long-term partnerships.
 
Our recent growth has also provided opportunity to others such as Boral Concrete in Pinjarra, Auto One Pinjarra, Pinjarra Fresh Food Market and Pinjarra Newsagency.
 
Through our procurement policy, we also provide opportunities for hundreds of small business contractors from agriculture, maintenance, cleaners and caterers, to real estate agents and transport firms.
If larger companies from outside the local area win a contract, we encourage them to use local businesses.
 
And we do this ourselves. Our function today has been co-ordinated with the help of local caterers, party and audio hire – Mandurah Fresh Catering from Ravenswood, Mandurah Party Hire and Peel Audiovisual.
For Alcoa the new office will provide for greater efficiencies through enhanced service delivery and closer location to key customers in our refineries and minesites.
 
Importantly, the new centre’s design will encourage rapid innovation and eco-efficiency.
 
Just as growth has been a significant part of the Peel’s history, we see it as being a strong part of the Peel’s future.
 
Certainly Alcoa’s growth is closely aligned with the region and we see the people of the Peel being a vital part of Alcoa’s future globally.
Already our employees, the majority who live in the region, play a significant role in the global alumina and aluminium aircraft and motor vehicle industries.
 
Aluminium, our end product, comprises around 80% of a Boeing 747 aircraft’s unladen weight.
 
Aluminium motor vehicles are light weight, producing better performance and consuming less fuel.  They offer improved safety from the superior strength and durability of aluminium alloys.  
 
Aluminium is, we believe, part of the solution to global warming.
 
Aluminium is almost endlessly recyclable.  Recycling saves 95 per cent of the energy it would take to make new metal and, for example here in Australia, Alcoa recycles around 70,000 tonnes of aluminium each year.
 
Aluminium production is growing as more and more applications are developed for this adaptable, durable and recyclable metal.   All around the world, aluminium is a material in increasing demand.   This presents opportunities for Alcoa, Pinjarra and the Peel region.  
 
This region is uniquely positioned to take advantage of the global growth in alumina demand, in particular by China
Our investment to increase production at the Pinjarra refinery is now being met by an investment in the business services required to support this growth and growth for the future.
 
We want to work with you to secure our future growth and the opportunities it will bring to the region.
 
Western Australia and the Peel region’s advantages are substantial. This region is well placed to capture future growth with a reliable and efficient energy source in natural gas and a highly skilled and competitive workforce.
 
Looking forward, the opportunity I am very excited about is our proposal to expand the Wagerup refinery.
 
This project presents a once-in-a-generation opportunity.  It will mean jobs, growth and long term security for local communities, businesses and young people.
 
Potential benefits include increased exports by over $550 million per year and increased State royalties by $10 million per year.
 
It will provide 260 new permanent Alcoa jobs and 3000 direct and indirect jobs across WA.
 
Into the future, it will be important to continue to maximise benefits to local businesses, jobs and communities. 
 
Local suppliers are taking the opportunity to tender globally and competitively for our contracts, on the internet. This means businesses that have already been successful working for us on the Pinjarra Efficiency Upgrade stand a very good chance of further long-term contracts.
 
We are committed to working with the community on opportunities for the future, we are committed to supporting local businesses, and we are committed to being an active contributor to the community.
 
Our future is a partnership with the community and together we will work to promote sustainable prosperity in the Peel region.
 
Thankyou

Read the media release on the announcement of Alcoa's new Pinjarra office


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Read the speech by Bill Hames, Executive Chairman , Hames Sharley


Highlights the environmental design and construction of Alcoa's new Pinjarra Office
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