Norsk Hydro decided to close its Kurri Kurri Aluminium Plant permanently. The smelter is situated at Kurri Kurri, in the hunter Region of New South Wales, Australia. The plant has been closed for its maintenance and ceased its production in 2012.
After being in the maintenance and care mode since 2012, the decision to close the Kurri Kurri Aluminium smelter permanently is allowing for redevelopment and remediation options for the site progresses. The decision to stop the production from the plant in 2012 was due to the overall market situation for the light metal including weak macroeconomic environment, low prices, uncertain trade outlook and strong Australian dollar to the American dollar.
The company has been evaluating and preparing for a possible shutdown of the plant and has been setting up plans for the site future. This made to take the decision of permanent closure of the Kurri Kurri Smelter. The company said that the plans would be again consulted with the stakeholders and local communities.
Executive vice president of Hydro’s primary Metal business area, Hilde Merete said that they were always committed to their stakeholders and the local communities in maintaining a good relationship, to understanding their ideas, values and concerns and to keep them involved in all plans and phases of the projects. The closure costs are expected to be compensated by the land and equipment sale.
However, the decision to shutdown makes the nation’s jobless rate high. The Kurri Kurri Aluminium plant had nearly 500 employees, with a net yearly production of around 180,000 tonnes.