Bluff aluminium smelter to cut production

Monday, Jul 09, 2012
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  Even the industries we need the most aren't immune to the pinch of tight economic times.

Tiwai-Point-Aluminium-Smelter--supplied.jpg

  Bluff aluminium smelter

  The aluminium smelter in Bluff is cutting production by 15 percent.

  Business Correspondent Roger Kerr has told Newstalk ZB's Susan Wood that global aluminium prices are down, and the exchange rate is up, which hurts economic viability.

  He says the plant has 800 workers.

  "They are New Zealand's largest user of electricity with long term supply contract from Meridian energy from the Manapouri generation plant."

  He says they export about $700m worth a year, but profitability is highly volatile depending on the global aluminium prices.

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