Alcoa review puts 4000 WA workers no notice

Alcoa's 4000-plus workers in WA face an uncertain future after the US aluminium giant launched another round of "aggressive" cost cutting and warned that smelters and refineries were likely to be shut or sold.

The whole-of-company review could throw the spotlight on Alcoa's Kwinana refinery, one of its three in WA and the oldest and least profitable.

An Alcoa spokesman said yesterday no individual plants had been identified as part of the review, which was announced in New York on Friday night.

Alcoa expects to complete the review within 12 months.

"Our goal is to move down the global aluminium cost curve to the 38th percentile and the global alumina cost curve to the 21st percentile by 2016," Alcoa global primary products president Bob Wilt said.

"The results from this review will help achieve those goals.

"We'll take action only after a thorough strategic review to determine the best outcome for our shareholders and in consultation with our stakeholders."

Alcoa's WA bauxite and alumina operations are considered among the best in its global portfolio and world-class in scale. The Kwinana, Pinjarra and Wagerup refineries produce about nine million tonnes of alumina a year, or about 11 per cent of world alumina demand. However, Kwinana has been battling with efficiency challenges that are a legacy of its 1963 start-up.

Alcoa's review will seek to cut 2.8 million tonnes of refining capacity, or 16 per cent of its alumina output across the world. It is also reviewing its aluminium smelting portfolio.

Amid the fallout from the global financial crisis, Alcoa idled 1.2 million tonnes of refining capacity and many jobs, though most cuts bypassed WA.