CFAC UPDATE: Columbia Falls Aluminum unlikely to reopen, even after recession ends

Columbia Falls Aluminum Co. will lay off its final 90 workers and close at the end of July, after years of financial problems. “We don’t see right now the relief in sight that would help keep us running,” said company spokesman Haley Beaudry. A week ago, the company told its remaining employees, whose numbers have been whittled down to fewer than 90, of the impending layoffs. Under federal law, the company is required to give employees 60 days’ notice. Beaudry said the company plans to continue production over those final two months, though a lot will depend on factors such as aluminum and electricity prices. The layoffs aren’t much of a surprise, he said. Last summer, 124 workers were laid off. In December, the company announced plans to close in February; then a power-pricing agreement with the Bonneville Power Administration helped keep the plant open. When that announcement was made, CFAC still had nearly 200 employees. This spring, as the recession deepened, the plant had to make more cuts, Beaudry said. Aluminum companies nationwide are struggling to stay open because the price of raw materials continues to increase while the price of aluminum continues to fall. That’s because some regions of the world, like the Middle East, have continued to produce large quantities of aluminum n as they enjoy low energy and commodity prices, Beaudry said. The basic rules of economics dictate that when there’s a surplus of aluminum available, the demand is low. And when demand is low, so are prices. In recent months, the Columbia Falls plant has run at just 10 percent of capacity, with only half of one potline n in which aluminum is produced n operational. There are five potlines at the plant; a year ago, three were still in use. Though he admits it’s a long shot, Beaudry said CFAC is looking at one final option in an attempt to prevent the plant’s closure: federal stimulus money. The company has not made any formal move to apply for funding yet, mostly because it’s not entirely sure if it could explain how it qualifies for the money. Federal stimulus dollars have mostly been directed toward creating new jobs, Beaudry said, and CFAC wants its employees to keep their existing jobs. In addition, Beaudry said, so many aluminum companies are struggling to remain open that Washington might not care as much about those in smaller towns. “The number of jobs lost in Montana is tiny compared to the number of jobs lost in, say, Detroit,” he said. Which leads him back to the conclusion that there’s really not much the plant can do to remain open longer than this summer. “I can’t say that there is any light at the end of the tunnel,” he said. 　　source：www.missoulian.com