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| Version 2 | Version 3 |
|---|---|
| Power deal threat to metal plant | Power deal threat to metal plant |
| (about 4 hours later) | |
| Anglesey Aluminium Metal (AAM) has said its plant will turn off its smelter in September, after failing to secure a deal to supply electricity. | Anglesey Aluminium Metal (AAM) has said its plant will turn off its smelter in September, after failing to secure a deal to supply electricity. |
| The plant is one of north west Wales' largest employers, with more than 500 staff at the Holyhead site. | The plant is one of north west Wales' largest employers, with more than 500 staff at the Holyhead site. |
| But it relies on electricity from nearby Wylfa nuclear power station which is due to close next year and no decision has been made on replacing it. | But it relies on electricity from nearby Wylfa nuclear power station which is due to close next year and no decision has been made on replacing it. |
| The Anglesey MP warned of a "dreadful" UK-wide economic cost if AMM closed. | The Anglesey MP warned of a "dreadful" UK-wide economic cost if AMM closed. |
| Anglesey Aluminium uses 12% of all the electricity supplied to Wales, and is believed to be the biggest single user of electricity in Britain. | Anglesey Aluminium uses 12% of all the electricity supplied to Wales, and is believed to be the biggest single user of electricity in Britain. |
| But with the planned closure of Wylfa's nuclear plant in 2010, AAM has been forced to examine other power supply options. | But with the planned closure of Wylfa's nuclear plant in 2010, AAM has been forced to examine other power supply options. |
| The social cost of the closure of Anglesey Aluminium would be dreadful not just for Anglesey but for the Welsh and UK economy MP Albert Owen | The social cost of the closure of Anglesey Aluminium would be dreadful not just for Anglesey but for the Welsh and UK economy MP Albert Owen |
| In a statement on Thursday, the joint owners of the metal plant, Rio Tinto Alcan and Kaiser Aluminium said it anticipates that smelting operations will end in September 2009, when its current power supply contract finishes. | In a statement on Thursday, the joint owners of the metal plant, Rio Tinto Alcan and Kaiser Aluminium said it anticipates that smelting operations will end in September 2009, when its current power supply contract finishes. |
| The company said it will now enter consultation with staff, but has yet to outline how many jobs are under threat. | The company said it will now enter consultation with staff, but has yet to outline how many jobs are under threat. |
| However, AAM said it would "evaluate alternative operating activities" at the plant, including the continuation of remelt and casting operations at Anglesey. | However, AAM said it would "evaluate alternative operating activities" at the plant, including the continuation of remelt and casting operations at Anglesey. |
| David Bloor, managing director of Anglesey Aluminium, said: "We have worked hard over many months in our efforts to extend the existing power contract beyond September of this year but have not yet been successful." | David Bloor, managing director of Anglesey Aluminium, said: "We have worked hard over many months in our efforts to extend the existing power contract beyond September of this year but have not yet been successful." |
| ANGLESEY ALUMINIUM FACTFILE Anglesey Aluminium opened in 1971Its 255 megawatt power supply is sourced from the nearby Wylfa nuclear power station, which also opened in 1971 but is decommissioned in 2010The company is owned by Australian-owned Rio Tinto Plc and California-based Kaiser Aluminum & Chemical CorpIts 140,000 tonne output includes billet alloys, rolling blocks and ingots for the European market. | |
| "The operation is dependent for its power on the nearby Wylfa nuclear power station which is itself due for closure within the next few years. | "The operation is dependent for its power on the nearby Wylfa nuclear power station which is itself due for closure within the next few years. |
| "We are fully aware of the significant impact on the workforce and on the local community and will work with partners and stakeholders to develop other long term options in line with existing operations, the needs of the local community, and the economic market situation." | "We are fully aware of the significant impact on the workforce and on the local community and will work with partners and stakeholders to develop other long term options in line with existing operations, the needs of the local community, and the economic market situation." |
| The company also said it would continue to "pursue alternative sources of affordable power". | The company also said it would continue to "pursue alternative sources of affordable power". |
| But it stressed "no sources have yet been identified" that would allow smelting operations at the plant to continue. | But it stressed "no sources have yet been identified" that would allow smelting operations at the plant to continue. |
| Anglesey MP Albert Owen said he believed an interim deal on power could still be reached. | Anglesey MP Albert Owen said he believed an interim deal on power could still be reached. |
| "Energy prices every domestic user knows have doubled last year and has fallen back this month. | "Energy prices every domestic user knows have doubled last year and has fallen back this month. |
| "So the climate this year is different to what it was six months ago. And both sides want to get the best deal for their company." | "So the climate this year is different to what it was six months ago. And both sides want to get the best deal for their company." |
| New arrangements | New arrangements |
| Mr Owen added: "And that's what we can do as politicians is to mediate and to get that important social dimension into the equation as well and not just talk about pure economics. | Mr Owen added: "And that's what we can do as politicians is to mediate and to get that important social dimension into the equation as well and not just talk about pure economics. |
| "The social cost of the closure of Anglesey Aluminium would be dreadful not just for Anglesey but for the Welsh and UK economy." | "The social cost of the closure of Anglesey Aluminium would be dreadful not just for Anglesey but for the Welsh and UK economy." |
| A Welsh Assembly Government spokesperson said officials and colleagues from the Department for Business Enterprise and Regulatory Reform were working closely with Anglesey Aluminium's management "to look carefully at every possibility of securing new arrangements for the plant's power supply". | A Welsh Assembly Government spokesperson said officials and colleagues from the Department for Business Enterprise and Regulatory Reform were working closely with Anglesey Aluminium's management "to look carefully at every possibility of securing new arrangements for the plant's power supply". |
| "There is a range of options to examine, and we are determined to explore every possible means to continue operations beyond the end of its current energy contract with Wylfa power station," the spokesperson added. | "There is a range of options to examine, and we are determined to explore every possible means to continue operations beyond the end of its current energy contract with Wylfa power station," the spokesperson added. |