Norwegian smeling giant Norsk Hydro has announced it has confirmed the closure of its Kurri Kurri aluminium plant following a consultation period with the company’s local employees.

 

"After consulting with the workforce and the unions, we have come to the conclusion to close the remaining two production lines at Kurri Kurri. We will shortly start shutting down pots, and will do this in a safe and proper manner," said Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.

 

The company blamed a combination of a weak macroeconomic environment, low metal prices and an uncertain market outlook coupled with the strong Australian dollar.

 

One potline was already curtailed in February. The process to close the remaining two potlines will start shortly and is expected to take up to three months. More than 300 people will be made redundant as a consequence of the decision to close the plant.

 

The company expects to pay $33.2 million in redundancy packages.