March 27, 2012, Sardinian workers are protesting the planned closing of Alcoa’s Portovesme aluminum smelter on the island of Sardinia. The move could cost Italy the loss of at least 1,500 jobs.
U.S. media last reported that U.S. based Alcoa was making a deal with union workers to keep the factory open, however, European media says that ain’t so.
In fact three potential investors are now suing Alcoa. The Italian government has been demanding Alcoa keep their factory open. The Spanish government is also upset because Aloca has plans to reduce smelter operations there.
This is evidence that Corporate America is partly to blame for the continuing economic disaster in Europe! But it’s not just Europeans losing their jobs, Alcoa is hitting Australians as well.
In Geelong, Australia, Alcoa says it’s closing down operations there, because it doesn’t want to pay its electricity bill! Alcoa wants a deal from the Australian government, and utility suppliers, in order to keep its Point Henry smelter open.
Alcoa also blames the pending closing of their Australian smelter on the need for $100 million AUD (Australian Dollars) to upgrade the smelter to meet environmental regulations. 600 people could lose their jobs.
But the real reason for the closings of all these Aloca operations worldwide, is that the price of aluminum is not high enough for Alcoa executives.
Recently Alcoa officials said the recent drop in aluminum prices “…will result in a global aluminum industry deficit of 600,000 metric tons in 2012.” Why would that be? Because the aluminum industry will cut back production until aluminum prices go back up. That means closing down factories, creating thousands more unemployed people.
Interestingly, despite aluminum prices being low, on March 1, 2012, Alcoa announced they were actually raising prices (by 5%) on some of their aluminum products!