Kwinana update – curtailment of production
Hi Team
Alcoa has made the difficult decision to curtail production at our Kwinana Alumina Refinery.
I appreciate the timing of this announcement is not ideal, and nor is being notified by text and email.
First and foremost, on behalf of the entire Alcoa team, I want to express appreciation for your contribution to six decades of uninterrupted operation at the refinery. As I reflect on our journey over the past 60 years, it’s clear it hasn’t always been a smooth ride. Yet in every challenge, your commitment and dedication have made all the difference.
This decision reflects a range of factors impacting the refinery’s viability including age, scale, operating costs and bauxite grades, as well as current market conditions. Through the Path to Profitability Project we did everything we could to demonstrate Kwinana refinery can run successfully and profitably. We are very grateful for everyone’s efforts, however, today we face the difficult truth about the plant’s current viability.
The curtailment will be phased to ensure it is done safely and responsibly. This will include a gradual step down of the workforce. During quarter one this year we will maintain current production levels and there will be no significant change to our workforce numbers. In the second quarter we will reduce our workforce to about 650 employees as we start to scale back operations. Production will cease in the third quarter and at the same time there will be a further reduction in our workforce to about 250 employees who will help us operate the refinery to manage the water balance. The refinery circuit will stop in the third quarter of 2025 and a further step down to 50 employees will occur at this time.
Your safety and wellbeing is now - and always has been - our number one priority. We will use the next few months to understand and balance as best we can your needs and the needs of our business. We will look at all options including voluntary redundancies, redeployment and assistance to facilitate employment at other workplaces.
Understandably, there will be a sense of unease while we work through the details and I would ask you to look after yourself and look out for one another.
There will be plenty of time for you to ask questions over the coming days and weeks. You can contact me directly any time or reach out to your supervisor or any of our leaders.
Support services are also available and I encourage everyone to take advantage of these arrangements:
- Call our Employee Assistance Program provider BSS on 1800 303 090 for a free and confidential discussion.
- Contact our dedicated HR team on extension 9999 or 1800 624 621 from an external number.
- Alternatively, you can email HR on FOC03X1@alcoa.com
Your discipline around safety is vital. Above all, what really matters is everyone going home at the end of the shift in the same condition you arrived so please follow our safety management system. If you’re distracted - stop and think before moving forward with your task or seek help.
Our refinery has been a significant part of the Kwinana area for the last 60 years providing local business opportunities and support for community initiatives. We will continue to work with our partners to understand and minimise any potential impacts as much as possible. Alcoa remains committed to WA in the long-term and we will continue to assess options for the refinery, monitoring the factors that have led this decision.
On a personal note, I understand what it is like to want things to remain the same, but also to get better. It can be an uneasy conflict to live with. Today, the uncertainty about the immediate future of our refinery has lifted.
So now, I encourage everyone to do the best possible job with curtailment and maintain our high standards. Some days it won’t be easy, but we have each other for support and a strong legacy to guide us through this tough situation.
Thank you for your efforts in ensuring that the next six months are a fitting tribute to our shared history - marked by resilience, dedication and a commitment to excellence. Together, let’s navigate the next challenge ahead with the same spirit that has defined our journey so far.
David Feast
Kwinana Refinery Operations Manager
9 January 2024