Analysts Say Alcoa’s West Australian Refineries Not at Risk
ABC News reported that analysts predict that Alcoa Inc.’s (NYSE:AA) West Australian refineries will remain open, despite the cost-cutting review of global operations by the company.
ABC News reported that analysts predict that Alcoa Inc.’s (NYSE:AA) West Australian refineries will remain open, despite the cost-cutting review of global operations by the company.
As quoted in the market news:
The American aluminium giant told investors the whole-of-company review would look at the performance of its smelters and refineries, warning plants could be shut or sold.
It said the potential actions could affect 14 per cent of its global smelting capacity and 16 per cent of its refining capacity.
The company employs about 4,000 people in Western Australia across three alumina refineries at Kwinana, Wagerup and Pinjarra.
Peter Strachan from Stock Analysis stated:
The WA operation will stay open and I think they will be seeking more efficiencies out of those operations.
One of the factors impacting on Australia is the high cost of doing business here, rising costs for natural gas in the Perth basin and also high labour costs in Australia compared with some of their other operations.