Rio Tinto Alcan reveals plan to close Northumberland smelter
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Rio Tinto Alcan has announced plans to close its Lynemouth aluminium smelter.
The company says it has started a 90-day consultation with staff and union representatives, and is also in discussions regarding the possible sale of the power station at the site.
The Lynemouth smelter in Northumberland opened in 1972. It employs 515 people, with an additional 111 employed at the power station.
Jacynthe Côté, chief executive of Rio Tinto Alcan, said: ‘This decision follows a thorough strategic review that explored every possible option for continuing to operate the smelter and power station.
‘However, it is clear that the smelter is no longer a sustainable business because its energy costs are increasing significantly, due largely to emerging legislation.’
Dr Neil Bentley, Confederation of British Industry (CBI) deputy director-general, said: ‘This news shows why the government must act to insulate manufacturers most at risk from the increasing cost of energy legislation.
‘Energy-intensive companies make the very products the UK needs to move to a low-carbon economy and are already being hit by rising energy prices and slower demand.
‘The CBI proposes targeting companies most at risk with an exemption from the carbon floor price.’
Rio Tinto Alcan said in a statement that affected employees will receive support, including re-training and job-search assistance.
Readers' comments (2)
Alan | 20 Nov 2011 9:22 am
So Alcan tell us that Aluminium is essential for a move to a low energy economy? This plant was a huge carbon emitter - another great example of growth economics gone mad. Why not retrain some of those engineers to work out how an abundant but reducing stock of existing refined metal can be used more intelligently in permananent installations to achieve a steady state economy, instead of producing more and more stock for less and less rational throwaway applications? There is always room for innovation and improvement, but no place for a complete lack of direction.
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alan | 20 Nov 2011 9:32 am
Whoops! That should have been spelt "Permanent", by which I mean that if we wish to reduce net environmental impact then plainly we need to reduce gross industrial activity. We can do this by elevating respect for existing infrastructure and material to a very high level. For example, refurbishing existing buildings rather than demolishing, reusing components on a modular basis and so on..... There are some arguments for innovation, but also some for relaxation, ie rely on existing systems proven to work over millennia!. The really effective systems are in ecology, dont take my word for it - go look!
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