Mar 18 2003
Embattled aluminium producer Columbia Falls Aluminum is facing a new dilemma after having told its staff that 175 of the 340 staff would be laid off last week. Apart from trying to retain skilled staff, they now have to try and sell back some of the electricity they have purchased under contract.
The Montana-based company which accounts for about 20% of all electricity consumed in Montana has been in operation since 1955 except for a 12 month period when they closed up two years ago during a regional power crisis. They then re-opened, only to be faced with the rocketing price of their raw materials due to the aluminium boom in China.
The region is also enduring a drought that could have a dire affect on price of electricity which is generated by hydroelectricity.
These factors have lead to an 80% reduction in production. This in turn has resulted in the closure of 4 of their 5 production lines. The remaining line being kept in operation in the hope that the market will turn around, although it is operating at a loss.
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