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Minister to fight for Alcoa jobs | Minister to fight for Alcoa jobs |
(20 minutes 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. |
Andrew Davies told BBC Wales' Good Morning Wales programme that £2m in grants remain available to the company. | Andrew Davies told BBC Wales' Good Morning Wales programme that £2m in grants remain available to the company. |
But, he said, the assembly government would want repayment of the £2.5m already paid out if the factory closes. | But, he said, the assembly government would want repayment of the £2.5m already paid out if the factory closes. |
Andrew Davies said he was deeply disappointed at the news | |
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. | 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. |
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. | 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. |
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. | 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." | "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. | 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. |
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 Paul Collier, Amicus | |
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." | 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. | 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." |
Alcoa is to start consultations with employee representatives within the next week. | Alcoa is to start consultations with employee representatives within the next week. |