Alcan Upgrade Announced

Monday, August 14, 2006 08:58 AM

Fifty two years after the first Alcan plant opened in Kitimat comes news of a new "investment" in Kitimat.

As revealed by Opinion 250.com over the weekend, Alcan Inc. has now confirmed it plans to spend $1.8 billion US to upgrade its aluminum smelter in Kitimat. The company says the upgrade will create 2,000 temporary jobs.

When the project is completed, there will be 550 fewer employees at the plant, bringing the job force down to 1,000. The project is expected to be fully operational by 2012. The project is subject to approvals including B.C. Hydro and the B.C. Utilities Commission

According to the company’s release, the changes will also

Increase plant production 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.
Decrease greenhouse gas emissions by 70%

In making the announcement, Premier Gordon Campbell announced an extension of B.C. Hydro’s Power Purchase agreement with Alcan. Saying the extension will allow B.C. to buy excess power at competitive rates, and provide enough power to serve 225 thousand homes. In short, said the Premier, the extension will help B.C. close the demand and supply gap for power in B.C. and will look after B.C.’s electricity needs till at least 2024.

While Alcan representatives say the upgrade will ensure stability in the region, the loss of 550 jobs means the region will lose about $29 million dollars in wages per year. That amount would be in addition to the approximate $17 million a year in wages already lost because of previous cutbacks.

Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Monday, August 14, 2006 08:58 AM in News by 250 News

Return to Home

Comments

Posted by: trusted on August 14 2006 10:39 AM

So! There will be no stoppage of progress.
We need the hydro-so we forfeit the jobs-but with the increased hydro, perhaps industry will provide more jobs.
What is this world all about?
Having your cake and getting to eat it all is just not in the cards.
Progress, and being capable of producing for the demand, will take priority.
Not much of a sacrifice-750 jobs-for a power supply for 225,000 homes.
Also, the expenditure of 1.9 billion U S in the province, hardly qualifies as a paltry sum.
Wonder if Prince George will get any increased business?
Hope so.
Stop the moaning, and be happy B C is still on the move.

Posted by: diplomat on August 14 2006 2:22 PM

>Stop the moaning, and be happy B C is still on the move.<

Stop the moaning and be happy that Kitimat is not turning into another Ocean Falls, at least not for another 40 years or more.

>Having your cake and getting to eat it all is just not in the cards.<

Well said, in my humble opinion.

Posted by: Palopu on August 14 2006 6:21 PM

This all sounds great if your not one of the 700 people who will lose their jobs, and probably take a big hit when they cant sell their house.

The original agreement made in 1950 should stand and Alcan should live up to it. WAC Bennett will be rolling in his grave if he knew what kind of crap is taking place in Kitimat.

All you people who support selling surplus power to Hydro so that they can sell it to the USA will live to regret it someday. 1000 lost jobs in Kitimat will never be replaced.

We'll see how much you like these types of deals when the local Pulp Mills decide that it is cheaper to produce electricity than it is to make pulp, and shut down one mill and lay off 500 people. Co-Generation is the in thing right now, however it is not very labour intensive, but you can make big profits.

Posted by: Chadermando22 on August 14 2006 6:32 PM

Well said Mr. Palopu.

The only thing I can add is that co-generation makes use of abundent beetle wood of no value, where as our sacrifice to our rights to our watershed has huge costs and huge implications to the people of BC for the subsidization of profits in Switzerland.

So now the premier says we are good for electricity till 2024, when just weeks ago he was in town softening us up with word that BC was a net importer in crisis. It seems our provinial government sold the public on the idea for Alcan and neglects to include that watershed as part of BC's power production output.