Wenatchee area smelter shuts down for 15 months

The Associated Press 7/2/01 8:35 PM

MALAGA, Wash. (AP) -- Alcoa Inc.'s Wenatchee Works aluminum smelter has been shut down for the first time in its 49-year history under a temporary electricity buyback agreement with the Bonneville Power Administration.

A couple dozen workers were on hand when the last of the plant's potlines were idled at 2 a.m. Sunday.

One of the workers wrote "THAT IS ALL!" in chalk on a huge container holding the final load of aluminum produced before the plant's 15-month shutdown.

Two of the plant's potlines were shut down earlier this year, with the remaining two idled Sunday.

The smelter in this town southeast of Wenatchee had produced aluminum continuously since opening in 1952.

"I never thought that they would shut down the gray old lady," 15-year employee Dick Winn said.

"It's kind of a sad deal for all the employees to see it go down," added Dan Bonwell, a pot-room shift supervisor. "But I think it's a good business decision."

Production is being temporarily halted under a power-remarketing plan intended to protect the smelter's long-term future.

During the shutdown, the Chelan County PUD will sell Alcoa's share of county power on the open market. Proceeds will be used mainly to keep plant workers on the payroll and to develop or acquire a new power source for the smelter.

The plant will operate with a work force of about 400 during the shutdown, with employees handling tasks ranging from cleanup to painting.

A total of 78 recent hires lost their jobs due to the shutdown, and 58 senior employees have accepted early retirement packages. Alcoa plans to offer a second round of early retirements.

Just last year, Pittsburgh-based Alcoa announced plans to increase production at its plants in North America and Australia.

But an energy crisis in California has driven up electricity prices and prompted concerns about the potential for a serious shortage in the Northwest.

Several Northwest aluminum companies, which buy electricity directly from BPA, have cut production to sell back power to the federal power marketing agency

http://www.oregonlive.com/newsflash/index.ssf?/cgi-free/getstory_ssf.cgi?d0170_BC_PA--SmelterShutdown&&news&newsflash-financial

-- Martin Thompson (mthom1927@aol.com), July 02, 2001