Alcan aluminium smelter jobs under threat

　A THREAT to hundreds of jobs in Northumberland was raised yesterday when the owners of an aluminium plant said it was considering closure.

Rio Tinto, which owns the smelting plant in Lynemouth, has revealed plans to “streamline its aluminium interests” which include the 650-job smelter and power station in Northumberland.

North East MPs and union officials called the news of the possible closure “potentially devastating” and urged the Government to intervene.

Rio Tinto is selling six aluminium plants in Australia and New Zealand while a group of “non-core” assets, which include the Northumberland site, will be managed by the company until a final decision is made about their future.

John McCabe, Alcan Aluminium UK Corporate Director said: “We have not found a buyer for the smelter which employs 510 people so closure is a potential option, but we do have an interested party for the power station where 120 people are employed.”

The power station burns coal to provide electricity to the smelter, so any new operator would have to bear the cost of converting it to a more environmentally friendly biomass system.

Alcan was given planning permission for a biomass plant earlier this year.

So far there has been no interest in the smelter.

The company said that rising energy prices had resulted in higher operational costs and expensive environmental changes are also now needed to upgrade the plant. No decision has been taken on when the smelter could shut, but the company has had talks with unions representing staff.

Tom Brennan, GMB Northern regional secretary, said the decision could be “devastating” for a part of the North East where unemployment is already high.

He said: “If Rio Tinto go ahead with an Alcan sale, it is imperative that they find a buyer who will run it as a going concern.”

Northumberland County Council leader Coun Jeff Reid said: “We are aware of the circumstance and we have been in discussion with the company and central government with regard to the future of Alcan.

“We are discussing plans for the various scenarios concerning the site and its employees.”

Liberal Democrat MP for Berwick Sir Alan Beith warned that a closure decision would hit Northumberland very hard.

He said: “Rio Tinto have obviously calculated that aluminium can be produced in countries where energy is cheaper and the environmental protection is taken much less seriously. This is a worldwide problem.”

The MP said he would press ministers to help towards the sale of the plant to a new operator.

He called for Blyth and Amble to be given Enterprise Zone status if the closure goes ahead.

Wansbeck MP Ian Lavery said he had contacted energy minister Charles Hendry, and was expecting his call to discuss the situation last night.

He said: “I’m absolutely furious about this. It’s appalling for them to come forward with a decision that may mean the closure of the plant and the loss of jobs without even waiting for a government announcement on support.”

North East Lib Dem Euro MP Fiona Hall called yesterday’s announcement “potentially devastating”

She said: “ As the biggest private employer in Northumberland, its importance cannot be overstated and I know the Government has been determined to provide all the help that it can.

“Obviously the immediate concern lies with the workers and their families.”