Major Workforce Reduction at Second-Largest U.S. Aluminum Plant, Reports Local News
On January 25, Reuters reported that the second-largest aluminum smelter in southeast Missouri, the United States, will be laying off "most employees" as it curtails operations by January 28. The decision is attributed to severe operational impairments caused by abnormally cold weather, preventing restoration while the plant is in operation.
According to a letter from Magnitude 7 Metals LLC, the owner of the smelter, the facility, with an annual capacity of 263,000 tonnes, will explore opportunities to secure fresh capital from potential investors with the aim of restarting the smelter in the future. The smelter, located in Missouri's New Madrid county, restarted in mid-2018 after being acquired by Swiss-based ARG International AG from Noranda through a bankruptcy process.
The plant currently employs approximately 450 union workers. Matt Lucke, former Glencore trader and head of ARG International, declined to comment on the curtailment decision, and the company did not respond immediately to Reuters' request for comment.
The aluminum smelter has faced challenges, with pollution monitor data for 2019 indicating high levels of chemicals and soot emissions, making it one of the sources of the dirtiest air recorded in the United States. According to Industrious Labs, a nonprofit focused on the energy transition, the primary challenge for aluminum plants is the high cost of electricity, constituting around 40% of their total production costs.
Annie Sartor, Aluminum Campaign Director for Industrious Labs, stated that the decision is a blow to the fragile primary aluminum industry in the United States. Sartor emphasized the need for the Biden Administration to swiftly secure renewable, affordable energy to sustain this vital material for the American economy.
The United States has seen a decline in aluminum smelters, having 23 operating plants in 1998 reduced to five, including Magnitude 7, due to closures and dismantling. The closure of Alcoa's Intalco aluminum smelter in Washington state in March 2023 and the idling of Century Aluminum's Hawesville, Kentucky, smelter in June 2022 further highlight the challenges facing the industry.
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