Alcan today announced a 1.8 billion investment in the company and the community, with its plans to modernize Kitimat works.
Upon completion the project is expected to make the Kitimat operation into what is described as a world class smelter, one of the three largest aluminum smelters in North America.
It is anticipated that production of the plant will rise by more than 60 per cent, to 400,000 tonnes a year from its current 245,000 tonnes. Ultimately when on line the new plant will increase Alcan's annual production of primary aluminum by more than four per cent.
The project which has been quite controversial in the Kitimat area for the last little while, should continue to be the thing of heated conversation around the town with today's annoucement.
A coalition of local interests called Don’t sell us out, had banded together to challenge Alcan’s plans of selling hydro power into the power grid instead of expanding the aluminum smelter. Local residents were also concerned that the company’s modernization plans would result in a reduced work force at the smelter, with approximately 700 jobs eliminated from the workforce.
Part of the electrical generation concerns were addressed in the Alcan press release, as the company announced it had a "smelter first provision" in its agreement with BC Hydro, suggesting that the bulk of its power from its Kemano generating plant will be used more efficiently in the new plant. However, one assumes that there will still be power to be sold to the province, power that many might prefer to see used at a smelter employing more people.
Today’s announcement suggests that 2,000 temporary and 1,000 full time jobs will be created through the project. However, it doesn’t specify if those 1.000 full time jobs are in addition to the current work force, or if that will be the final head count of workers on opening day in 2009. Such is the thing of the finely tuned press release; it never really spells out the picky little details. One would parse the numbers to conclude that the 1,000 number will be the final tally of workers at the new and improved smelter.
The details of today’s announcement would seem to confirm for the residents of Kitimat that indeed those 700 jobs will be eliminated through modernization. That is if you consider their concerns back in June, with the details of today’s announcement. In a Prince Rupert Daily News story at the time, Mayor Rick Wozney expressed concern over the plans of the giant aluminum smelter and the apparent change in corporate plans.
His concerns seem to be backed up by Prince George commentator Ben Meisner, a long time critic of Alcan, who suggests today's announcement is not all that great for the Aluminum city, and doesn't particularly bode well for the provinces resources, which Meisner says are being sold off dirt cheap..
The CBC website offered complete information (well as much as they were provided) on today’s 1.8 billion dollar project.
Alcan to build world-class smelter in Kitimat
Last Updated: Monday, August 14, 2006 7:09 AM PT
CBC News
Alcan Inc. plans to spend $1.8 billion US to upgrade its aluminum smelter in Kitimat, B.C., creating 2,000 temporary and 1,000 stable, full-time jobs in the community, near Prince Rupert in northern B.C.
The upgrade will also do the following:
Raise production of the plant by more than 60 per cent, to 400,000 tonnes a year from its current 245,000 tonnes.
Increase Alcan's annual production of primary aluminum by more than four per cent.
Make Kitimat one of the three largest aluminum smelters in North America.
The project "would make Kitimat a world-class aluminum production facility for the next 35 years and beyond," said Marco Palmieri, president of Alcan's regional primary metal group.
"Alcan's intention to invest in British Columbia reflects the province's competitive business climate, one which will contribute to Kitimat's economic vitality."
The smelter due to come on stream in 2009, subject to company and regulatory approvals.
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