SYDNEY, Feb. 18 (Xinhua) -- Global aluminum producer Alcoa on Tuesday announced the permanent closure of its Point Henry aluminum smelter and two rolling mills in Australia.
Alcoa will permanently close the smelter and an adjacent rolling mill in Geelong in Victoria, along with the second mill in Yennora in New South Wales, the aluminum giant said.
"The smelter will close in August and the rolling mills by the end of 2014," Alcoa said in a statement.
The decision will affect nearly 1,000 employees at the three sites.
The company said a comprehensive review found that the 50-year- old Point Henry smelter had no prospect of becoming financially viable.
"The two rolling mills serve the domestic and Asian can sheet markets which have been impacted by excess capacity," it said.
Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld says the company is committed to supporting the employees at the affected facilities through the transition.
"Despite the hard work of the local teams, these assets are no longer competitive and are not financially sustainable today or into the future," Kleinfeld said.
Alcoa also said it would actively seek a buyer for the Anglesea coal mine and power station, which currently supplies power to the Point Henry smelter.
The company confirms its Portland aluminum smelter in Victoria will continue normal operations, along with its bauxite mining and alumina refining operations in Western Australia.
Alcoa expects the cost of its restructure and closures to be between 250 million U.S. dollars and 270 million U.S. dollars.