Pittsburgh-based Alcoa Corp. will fully curtail production at its 60-year-old Kwinana Alumina Refinery in Western Australia, during the second quarter.
The company took into consideration multiple factors, including current market conditions, current bauxite grades, the facility’s age, operating costs and scale.
“Today’s curtailment decision comes only after thorough and careful deliberation, and we acknowledge that this action will impact workers, business partners, and the community,” Matt Reed, Alcoa executive vice president and COO, said. “We deeply appreciate the commitment and support of our many loyal employees, contractors, and suppliers at our Kwinana refinery, which has made a major contribution to Western Australia’s economic development over the last 60 years of continual operation.”
The curtailment includes reducing the work force from approximately 800 employees to approximately 250. Alcoa will work with employees to facilitate employment at other workplaces and potentially redeployment within the company.
All alumina production will cease during the third quarter of 2025, and the number of employees will be cut to approximately 50.
The facility had a net loss of approximately $130 million in 2023. It has been operating at approximately 80 percent of its nameplate capacity of 2.2 million metric tons since January 2023.
Alcoa’s port facilities beside the refinery will continue to operate.