United Kingdom
Wales; West Wales and The Valleys; Swansea
Location of affected unit(s)
Manufacture Of Basic Metal And Fabricated Metal Products
Manufacture Of Basic Metals
24.42 - Aluminium production

298 jobs
Number of planned job losses
Job loss
Announcement Date
22 November 2006
Employment effect (start)
27 November 2006
Foreseen end date
31 March 2007


Talks to save 298 jobs at the Alcoa aluminium plant in Swansea are under way following an announcement that the plant is to close in March 2007.

Welsh Enterprise Minister Andrew Davies said he was deeply disappointed by the news and wanted an 'urgent meeting' with managers at the company.

Swansea Council leader Chris Holley has also pledged to work alongside the assembly government in a rescue bid.

The US company has blamed rising energy, labour and materials costs.

The site, bought by Alcoa in 1968, mainly produces aluminium for the drinks container industry.

Mr Davies said he hoped to meet plant manager Alan Griffith later this week to discuss what else the assembly government could do to help keep the plant open.

He said 2 million GBP would be made available if the factory stayed open, but a 2.5 million GBP grant the firm already received will have to be paid back if it does not.

The minister said: "Certainly we will be making it clear the grant offer would be reclaimable, and I understand the company are aware of that, but obviously I would reinforce that message.

'I am aware that the company has been under huge cost pressure, with rising energy prices - electricity and oil and raw materials - and I know that they have been discussing a cost-cutting package with the unions.'

Mr Davies said that he thought there were "grounds for optimism" as the closure at Corus in 2001 which had threatened 3,000 redundancies had seen only around 100 people lose their jobs once the closure went ahead.

Union Amicus said it was 'shocked and outraged' at the announcement on 22 November 2006, which could lead to the loss of all 298 jobs at the plant.

Union representative Paul Collier said staff working at the plant would be 'rightly outraged' at Alcoa's announcement, claiming the company had been turning away orders from customers.

He added: 'We believe there are economic measures that we can take within the business - to restructure it or maybe even downsize it. It's important to us to keep this site alive.'

Alcoa spokesman Kevin Lowery said the plant had been in financial trouble for some time, but that the planned closure had been a 'tough decision'.

Alcoa is to start consultations with employee representatives within the next week.


  • 22 November 2006: BBC Website


Eurofound (2006), Alcoa, Closure in United Kingdom, factsheet number 64507, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64507.