Alcoa To Shut Down Central Texas Smelter
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Alcoa To Shut Down Central Texas Smelter
Alcoa announced Tuesday it will curtail remaining production at its Central Texas smelter because of an ongoing rate battle with its onsite power provider.
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(September 30, 2008)—Alcoa announced Tuesday it will curtail remaining production at its Rockdale smelter because of what it calls the “uncompetitive power supply to that smelter and overall market conditions.”

The company idled three of its six operating potlines in June as a result of the rate dispute with Luminant.

Luminant, however, issued a statement Tuesday afternoon accusing Alcoa of “once again refusing to take responsibility for its business decisions.”

“Alcoa should acknowledge its independent decisions instead of blaming power supply issues and unspecified "market conditions,” Luminant said.

The curtailment announced Tuesday will cost 660 employees their jobs.

The company said it will continue to operate its aluminum atomizer and its anode operations in Rockdale, which employ a total of 140 people.

Layoffs will be implemented in phases, Alcoa said.

Most of the reductions will come toward the end of November and in early December

Alcoa announced in late August it was laying off about 300 workers at its Rockdale smelter.

The move also affected about 100 contract employees, Alcoa said.

Read Alcoa’s Press Release

The company idled three of the plant’s six potlines in June because of what it said were ongoing unit outages and local market energy costs that increased by as much as $2,000 to $4,000 per megawatt hour during peak hours.

About 100 workers were to be laid off effective Aug. 31.

Another 60 lost their jobs effective Sept. 7 and 140 more were to be notified of layoffs in the fourth quarter, the company said.

Luminant issued a statement last month in response in which it said, “We believe Alcoa has a history of using layoffs to manage costs and drive their own profitability. This is simply another example. Alcoa has made independent business decisions that have apparently now resulted in layoffs.”

Luminant Statement

Luminant said Alcoa has refused price protections “along with a stable, predictable and economically viable power supply” and instead has “taken an inflexible stance, seeking power at unrealistically advantageous terms and demanding a price far below the prevailing commercial market price.”

Luminant Web Site

Alcoa Web Site

Latest Comments

Posted by: Sunshine on Oct 2, 2008 at 08:46 AM

To Robert Loc Lott: They cannot lay the salaried people off until all the others are gone due to paperwork reasons. And don't try to make this a racist thing with the "union". Ya'll have done worse things than Alcoa
[ Report Abuse ]
Posted by: Sam Bam Location: Tx on Oct 2, 2008 at 06:20 AM

Well, they did not get fired!
[ Report Abuse ]
Posted by: Bobby Location: Lott on Oct 2, 2008 at 03:34 AM

This wouldn't have happened if Alcoa would have keeped the power plant instead of selling it to Luminant. Also if Alcoa would have keeped the mines. At least if they would have keeped the mines, then they would have had a bargaing agent to get a better price for electricty. Alcoa plans these kinda of thing's years in advance. They really sold the power plant and mines just so now they can blame this on someone else. It is a real shame for Rockdale and Milam county.
[ Report Abuse ]
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