RAVENSWOOD, W.Va. - Century Aluminum has begun curtailment of one potline and informed the 685 employees at its Ravenswood aluminum smelter of the possible shutdown of the plant within the next two months.
Century Aluminum alerted workers Wednesday morning to the potential closure of the plant.
"If the price of aluminum does not stabilize and/or the company is unable to obtain the necessary monthly cost savings, the company will curtail 100 percent of smelter operations, beginning Feb. 15, 2009," a news release stated.
The announcement reverberated throughout Jackson County, leaving officials worried about the future of the plant, the city and the county.
"If they would have a massive layoff or close the plant it would be devastating to Jackson County and Ravenswood in particular," Ravenswood Mayor Lucy Harbert said.
The plant is the third-largest employer in Jackson County, after Rio Tinto Alcan's rolling mill and the Board of Education. The plant has a $34 million annual payroll, with an average annual salary of nearly $51,000.
Mark Whitley, director of the Jackson County Development Authority, said he remains optimistic.
"We continue to meet with officials from the state, and Gov. Joe Manchin is working hard on this issue."
Harbert is not taking the news sitting down. The mayor has a list of officials to call, to inquire about potential help to keep the plant running.
"I've got my list here," she said. "I'm calling the governor and some legislators. I'll call some (state and U.S.) senators and county commissioners to tell them how badly this would affect the county and Ravenswood in particular.
"The more noise we make, the more people will listen."
Mike Dildine, director of corporate relations for Century Aluminum Co., said the price of aluminum on the London Metal Exchange was at $1,430 a metric ton. Dildine said in July the price was more than $3,200 a metric ton.
"These are economic decisions based on the global economic crisis and the unprecedented decline in aluminum prices," Ravenswood plant manager Jim Chapman said. "We are experiencing significant losses at the current aluminum price."
Chapman said the potline curtailment will ultimately impact 120 hourly and salaried employees. Those employees will be temporarily redeployed on Dec. 20, after the curtailment is complete.
Whitley said it would cost Century about $5 million to bring the potline back up.
"We recognize it is simple economics," Whitley said. "The cost of aluminum has plummeted and the cost to produce it continues to rise."
The press releases states the company is seeking cost reductions in power, alumina, coke, pitch, labor and other materials and services.
Dildine said the Ravenswood plant, built in late 1950s, was a historic facility, but also the smallest and oldest facility in the company. Century also has U.S. operations in Kentucky and South Carolina.
"The notice today was the first one we issued. We are looking at all our operations all over the world," Dildine said.
Harbert said if government officials can shell out billions to bailout mortgage lenders and auto companies, someone can help out Century.
