News

Alcoa is to shut down its Swansea plant, which mainly manufactures aluminium for the drinks container industry, owing to “significant losses” brought about by the continuing rise of energy prices and high labour costs.

The Waunarlwydd facility, which was bought by the US-based group in 1968, is due to close in March 2007 with the loss of almost 300 jobs.

In a bid to keep the factory open, Welsh enterprise minister Andrew Davies has pledged £2m in funding.

However, Alcoa will have to repay a £2.5m grant it has already received if the site closure goes ahead.

Trade union Amicus has demanded a meeting with Alcoa management to discuss keeping the site open, even if it means downsizing.

Amicus regional officer Paul Collier said: “We will be asking why the company is claiming it can no longer afford to operate out of Wales when it has been turning away orders from customers. We will fight this decision and we’re urging the firm to meet with unions.”