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Alcan Northumberland site closure hits 500 jobs | Alcan Northumberland site closure hits 500 jobs |
(about 1 hour later) | |
More than 500 jobs are to be lost with the closure of a Northumberland aluminium smelting plant. | More than 500 jobs are to be lost with the closure of a Northumberland aluminium smelting plant. |
Rio Tinto Alcan, which owns the plant at Lynemouth, said it plans to close the site, where 515 people work. | Rio Tinto Alcan, which owns the plant at Lynemouth, said it plans to close the site, where 515 people work. |
It is also in discussions about selling the power station at the site, where 111 people are employed. The company will now hold a 90-day consultation. | It is also in discussions about selling the power station at the site, where 111 people are employed. The company will now hold a 90-day consultation. |
The decision has been described as a major blow for the area. | The decision has been described as a major blow for the area. |
Rio Tinto Alcan chief executive Jacynth Cote said the decision followed a thorough strategic review. | Rio Tinto Alcan chief executive Jacynth Cote said the decision followed a thorough strategic review. |
She said: "However it is clear the smelter is no longer a sustainable business because its energy costs are increasing significantly, due largely to emerging legislation. | She said: "However it is clear the smelter is no longer a sustainable business because its energy costs are increasing significantly, due largely to emerging legislation. |
"We are hopeful that the power station can remain in operation under new ownership." | "We are hopeful that the power station can remain in operation under new ownership." |
'Body blow' | 'Body blow' |
The Lynemouth smelter opened in 1972. The plant is estimated to contribute £60m to Northumberland's economy. | The Lynemouth smelter opened in 1972. The plant is estimated to contribute £60m to Northumberland's economy. |
Northumberland County Council leader Jeff Reid said: "This is very sad news for those who are employed at the plant and their families, as well as for the local community as a whole." | Northumberland County Council leader Jeff Reid said: "This is very sad news for those who are employed at the plant and their families, as well as for the local community as a whole." |
He said the focus would now be on supporting those affected. | He said the focus would now be on supporting those affected. |
North East Liberal Democrat MEP Fiona Hall said: "This is a real body blow for the staff, their families and Northumberland as a whole. | North East Liberal Democrat MEP Fiona Hall said: "This is a real body blow for the staff, their families and Northumberland as a whole. |
"The focus now has to be on ensuring there are jobs to go to for those that will find themselves out of work. | "The focus now has to be on ensuring there are jobs to go to for those that will find themselves out of work. |
"I will be urging the government to apply for EU recovery funds which can help limit the damage caused by the closure." | "I will be urging the government to apply for EU recovery funds which can help limit the damage caused by the closure." |
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