Norsk Hydro has announced it is considering ceasing its operations at its Kurri Kurri aluminium plant following the curtailing of three pot lines in January this year, citing the effects of the Federal Government's carbon tax. 

 

"Our Kurri Kurri workforce has worked intensively to improve the plant's cost position and no stone has been left unturned. Despite extensive efforts to improve profitability, we are faced with a very challenging situation at Kurri Kurri," says Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.

 

Hydro has also blamed ongoing weak macro-economic conditions, with low metal prices and an uncertain market outlook compounding the effects of the strong Australian dollar.

 

"The current cash losses are significant, with no sign of improvement anytime soon. We have therefore started to consult about full curtailment and will maintain a close dialogue with employees, unions and local stakeholders," Mr Aasheim said.

 

The plant, located near Newcastle in New South Wales, currently employs 344 people.