'No decision' over Alcan smelting plant in Lynemouth

Related Stories

Owners of an aluminium smelting plant facing closure in Northumberland say no decision has been taken on its future.

Rio Tinto, which owns the Alcan plant at Lynemouth, says it will try to sell the plant but might have to close if a buyer does not come forward.

The company is putting a task force together to help the 630 workers while a decision is being made.

It claims the plant brings in profit, but UK legislation will wipe that out by 2013.

Labour MP for Wansbeck Ian Lavery said the company had already made up its mind.

Start Quote

We're hoping for the best, but we're planning for the worst”

End Quote John McCabe, Alcan

"They want much more profit from their different organisations throughout the world.

"Most people would be happy with £40m, but they want 40% profits on the investments that they make."

John McCabe, from Alcan, said: "Rio Tinto is streamlining its global aluminium business in order to focus on its top assets globally, unfortunately Lynemouth isn't considered to be one of them as it does not return 40% rate of return for the business.

"Lynemouth is efficient but it is a high-cost operation; that's largely due to the cost of producing energy in the UK.

"With with rising costs in the UK, those profits would be entirely wiped out by 2013.

"There's never an ideal time for something like this, and we're aware of the difficulties the area is already facing, and we'll do everything we can to minimise impact on employees, local communities and local supply chain jobs.

"We're hoping for the best, but we're planning for the worst."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Tyne & Wear

Weather

Newcastle upon Tyne

9 °C 8 °C

Features

  • photo of patient zero, two year-old Emile OuamounoPatient zero

    Tracking first Ebola victim and and how virus spread


  • A young Chinese girl looks at an image of BarbieBarbie's battle

    Can the doll make it in China at the second attempt?


  • Prosperi in the 1994 MdSLost in the desert

    How I drank urine and bat blood to survive in the Sahara


  • Afghan interpetersBlacklisted

    The Afghan interpreters left by the US to the mercy of the Taliban


  • Flooded homesNo respite

    Many hit by last winter's floods are struggling to pay soaring insurance bills


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.