Alcoa can survive in Geelong- Shorten

Federal Employment Minister Bill Shorten says he believes it is possible for Alcoa's aluminium smelter near Geelong to survive.

Alcoa is examining the viability of its aluminium smelter at Point Henry in Geelong, which employs 600 people, because low metal prices, a high Australian dollar and input costs have made it unprofitable.

But Mr Shorten, who was a union representative for the operation for 14 years before moving to federal parliament, said productivity at the smelter remained high.

'The major trouble that Alcoa faces is our high Australian dollar,' he told Macquarie Radio on Thursday.

'The other big challenge is they use a lot of electricity making aluminium...

'I think it is possible that Alcoa can bat through these matters.'

Mr Shorten said the plant, despite being old, had good work practices.

'I actually know a lot of the men who work there and I've actually been in touch with some of them overnight.'