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Meeting call over Alcoa job cuts Minister to fight for Alcoa jobs
(about 1 hour later)
Welsh Enterprise Minister Andrew Davies says he wants an "urgent meeting" with managers at a Swansea aluminium factory to try to safeguard hundreds of jobs.Welsh Enterprise Minister Andrew Davies says he wants an "urgent meeting" with managers at a Swansea aluminium factory to try to safeguard hundreds of jobs.
Mr Davies said he was deeply disappointed Alcoa had decided to close the plant - which employs 298 people - by the end of March 2007.Mr Davies said he was deeply disappointed Alcoa had decided to close the plant - which employs 298 people - by the end of March 2007.
The US company has blamed rising energy, labour and materials costs.The US company has blamed rising energy, labour and materials costs.
The site, bought by Alcoa in 1968, mainly produces aluminium for the drinks container industry.The site, bought by Alcoa in 1968, mainly produces aluminium for the drinks container industry.
Union Amicus said it was "shocked and outraged" at the announcement, which could lead to the loss of all 298 jobs at the plant. Andrew Davies told BBC Wales' Good Morning Wales programme that £2m in grants remain available to the company.
'Rightly outraged' But, he said, the assembly government would want repayment of the £2.5m already paid out if the factory closes.
Mr Davies said: "This is deeply disappointing news from a company which has been part of Swansea's local economy for a very long time - particularly given the major efforts by the workforce to improve the position at the plant over the past 12 months and substantial financial support from the assembly government. Union Amicus said it was "shocked and outraged" at the announcement on Tuesday afternoon, which could lead to the loss of all 298 jobs at the plant.
"I have this afternoon spoken to Paul Collier, the union representative from Amicus, and Alan Griffith, the local plant manager at Alcoa, to offer my full support and commitment to do what we can to help retain these jobs in Swansea. Mr Davies said he hoped to meet plant manager Alan Griffith later this week to discuss what else the assembly government could do to help keep the plant open.
"I will now be seeking an urgent meeting with the unions and senior executives from the company to discuss this decision further." The plant produces aluminium for the drinks container industry
Mr Collier said staff working at the plant would be "rightly outraged" at the announcement, claiming the company had been turning away orders from customers. He said: "Certainly we will be making it clear the grant offer would be reclaimable, and I understand the company are aware of that, but obviously I would reinforce that message.
"I am aware that the company has been under huge cost pressure, with rising energy prices - electricity and oil and raw materials - and I know that they have been discussing a cost-cutting package with the unions."
Mr Davies said that he thought there were "grounds for optimism" as the closure at Corus in 2001 which had threatened 3,000 redundancies had seen only around 100 people lose their jobs once the closure went ahead.
'Downsize'
He added: "So I think we have a very good record and, yes, it's very disappointing news if it does come to pass but nevertheless, what I've said to the unions is that we will work with them and with the company to help anybody affected."
Amicus union representative Paul Collier said staff working at the plant would be "rightly outraged" at Alcoa's announcement, claiming the company had been turning away orders from customers.
He added: "We believe there are economic measures that we can take within the business - to restructure it or maybe even downsize it. It's important to us to keep this site alive."He added: "We believe there are economic measures that we can take within the business - to restructure it or maybe even downsize it. It's important to us to keep this site alive."
Alcoa spokesman Kevin Lowery said the plant had been in financial trouble for some time, but that the planned closure had been a "tough decision".Alcoa spokesman Kevin Lowery said the plant had been in financial trouble for some time, but that the planned closure had been a "tough decision".
He told BBC Wales: "Unfortunately... in addition to some overall market conditions going on we have significant losses going on at the plant due to rising energy, high labour costs and material costs." He told BBC Wales: "Unfortunately, in addition to some overall market conditions going on we have significant losses going on at the plant due to rising energy, high labour costs and material costs."
Severance terms
Mr Lowery said the Swansea factory was unable to offset its costs in a market where there was already "excess capacity" to produce aluminium.
Alcoa is to start consultations with employee representatives within the next week.Alcoa is to start consultations with employee representatives within the next week.
The company said it planned to offer its employees support such as job search workshops as part of the proposed severance terms.
Opposition parties said the closure was "alarming".
Welsh Conservatives' enterprise spokesman, Alun Cairns, said Welsh industry was "haemorrhaging jobs".
He added: "The long-term diagnosis for the Welsh economy is hardly encouraging and Labour lacks the ideas and the will to improve this increasingly dire situation."
Plaid Cymru said the closure came without any warning.
The party's assembly election candidate for Swansea West, Ian Titherington, said: "Swansea is leaking manufacturing jobs at a consistent and alarming rate."