3a Town -250 laid off due to electricity cost

[CenTexSports]

6/19/2008

Alcoa to Temporarily Idle Half of Rockdale, TX Smelter Due to Local Power Supply Issues

PITTSBURGH--(BUSINESS WIRE)--Alcoa (NYSE: AA) today announced it will temporarily idle half the production at its Rockdale, Texas aluminum smelter effective today as a result of ongoing supply issues with Luminant’s onsite power generating unit, Sandow Unit 4, and the resulting market power prices being uneconomical.

Three of the plant’s six operating potlines will be idled beginning immediately as a result of the ongoing supply interruptions and local market energy costs increasing to as much as $2,000 – $4,000 per megawatt hour during peak hours. The idled potlines represent approximately 120,000 metric tons per year of production.

Output at the remaining three potlines is planned to continue using contracted long-term power. As a result of the temporary idling, the company will begin a process to lay-off approximately 250 people across its total workforce at the plant.

“There have been ongoing supply issues at the dedicated power generating unit adjacent to our plant, which has forced us to go into the open market to secure power,” said John Thuestad, President of Alcoa’s US Primary Metals division. “Unfortunately local energy costs have escalated significantly over the past few weeks to an unsustainable level and we have no choice but to idle production that is reliant on uncompetitive power.”

“This is in no way a reflection on our workforce who has been doing an outstanding job,” said Thuestad. “Luminant’s inability to consistently operate the Sandow Unit 4 for our Rockdale Operations over the last few months, has resulted in uncompetitive power and forced us to make this decision. We’ll look to work with Luminant to see if we can secure competitive power to ease the impact on our local community and try to get back to normal production.”

[Old Tiger]

There are a ton of jobs still hear due to them building the new plant I don't think it'll effect the town very much

[CenTexSports]

Not the town because there are around 1200 contractor jobs there during the building stage for the new Sandow unit. But it will hurt the 250 families that will be laid off.

This is a REAL example of the effects of electricity prices.

[rockdale80]

Hope my brother doesnt get laid off.

[87 TIGER]

I havent heard this yet , I will shake some trees tonight at work to see whats going on. I sure hope not this could be a big blow to the town.

[Old Green]

My nephew tried to transfer to the Rockdale plant. He currently works at Alcoa plant in Pt. Lavaca.

[Old Tiger]

Originally posted by Old Green
My nephew tried to transfer to the Rockdale plant. He currently works at Alcoa plant in Pt. Lavaca. I'm guessing it didn't fall through?

[Old Green]

Originally posted by Go Blue
I'm guessing it didn't fall through? Nope !

[BURNT ORANGE HORNET 86]

don't know how many will get laid off but I was told at work that lines 3,4&5 will be shut down tonight. I will find out more info tomorrow when I go back to work.

[Old Tiger]

Originally posted by BURNT ORANGE HORNET 86
don't know how many will get laid off but I was told at work that lines 3,4&5 will be shut down tonight. I will find out more info tomorrow when I go back to work. are those some of the hottest out there?

[BURNT ORANGE HORNET 86]

yes room 14,18,&20 all are VERY HOT but their all hot

[Old Tiger]

Originally posted by BURNT ORANGE HORNET 86
yes room 14,18,&20 all are VERY HOT but their all hot yup obviously... :D


I just took the test the other week and hopin to hear back pretty soon.

[BURNT ORANGE HORNET 86]

Originally posted by Go Blue
yup obviously... :D


I just took the test the other week and hopin to hear back pretty soon.

just keep trying this will only be tempary as long as unit 4 has problems

[CenTexSports]

The original post above was from the Alcoa website.

[RdaleBoi08]

I work out at Alcoa for the summer work program they shut one down at 3 and @ 6 they were supposed to shut the other down as well...from what i was told from a fellow worker

[BIG BLUE DEFENSIVE END]

Originally posted by RdaleBoi08
I work out at Alcoa for the summer work program they shut one down at 3 and @ 6 they were supposed to shut the other down as well...from what i was told from a fellow worker

Hope your dad and my brother are going to be safe.

[RdaleBoi08]

I Think So, Hadn't Talk To Him Yet But I Will Sooner Or Later...

[rockdale80]

Originally posted by BIG BLUE DEFENSIVE END
Hope your dad and my brother are going to be safe.

Have you talked to Paulie? I dont think he was on those potlines, but I cant remember.

[BIG BLUE DEFENSIVE END]

Originally posted by rockdale80
Have you talked to Paulie? I dont think he was on those potlines, but I cant remember.

No, he hasn't returned my calls. To my knowledge he was a rover crane operator and went to wherever they needed him. He's been there for several years so I think he has some seniority on a lot of the people who work there.

[rockdale80]

Originally posted by BIG BLUE DEFENSIVE END
No, he hasn't returned my calls. To my knowledge he was a rover crane operator and went to wherever they needed him. He's been there for several years so I think he has some seniority on a lot of the people who work there.


Gotcha. I knew he was on the crane, but I didnt know if he was assigned a specific pot room. My fingers are crossed. That would suck if he lost his job.

[BIG BLUE DEFENSIVE END]

Originally posted by rockdale80
Gotcha. I knew he was on the crane, but I didnt know if he was assigned a specific pot room. My fingers are crossed. That would suck if he lost his job.

Yep, he can't catch any luck these days it seems, so hopefully things will end up positive for him in this regard.

[rockdale80]

Originally posted by BIG BLUE DEFENSIVE END
Yep, he can't catch any luck these days it seems, so hopefully things will end up positive for him in this regard.

I sure hope so. He didnt answer my call either, but I am not sure I have the right number so...

[BIG BLUE DEFENSIVE END]

Originally posted by rockdale80
I sure hope so. He didnt answer my call either, but I am not sure I have the right number so...

He was off of work today. I talked to the parents and he doesn't know anything about whether or not he still has a job.

[rancher]

My heart goes out to those who will be laid off. This is a trend that is happening more and more. The jobs those lucky enough to find afterwards are no where near the wages they were making. If a major lay off is made permanate, the school district will suffer as the tax base will be drawn down because of appraisals going south. This coupled with what Pecos Perry, John Sharp and the rest of the Texas Legislature did to school finance will be nothing short of a disaster. Remember part of the school budget the State gives to district are now frozen at 2006 levels (the maintain and operations side).

[87 TIGER]

Talked to alot of guys tonight about the layoff, we even had kcen channel 6 out of waco out tonight interviewing people to find out the beat of the locals. 3 lines are for sure shut down at least 250 maybe more will lose jobs. They say 3 years and under should be worried and some say up to 5 years. Should know alot more in the next few days. It's gotta be tough for the youngsters that just bought cars , houses, or started a new family.

[BIG BLUE DEFENSIVE END]

Originally posted by 87 TIGER
Talked to alot of guys tonight about the layoff, we even had kcen channel 6 out of waco out tonight interviewing people to find out the beat of the locals. 3 lines are for sure shut down at least 250 maybe more will lose jobs. They say 3 years and under should be worried and some say up to 5 years. Should know alot more in the next few days. It's gotta be tough for the youngsters that just bought cars , houses, or started a new family.

I heard the number was close to 300...Thankfully my brother was not one of the ones who were laid off, but it sure is disappointing for the ones who were; my thoughts are with them and their families and I wish them the best of luck.

[LH Panther Mom]

:( I understand what these folks are going through, all too well. Best of luck to them.

[BIG BLUE DEFENSIVE END]

Originally posted by LH Panther Mom
:( I understand what these folks are going through, all too well. Best of luck to them.

The near 300 people all worked in the pot rooms, and that is out of the 360 who worked in there.

[RdaleBoi08]

The People Who Got Layed Off Were People That Have Worked There 3 Years & Down...

[87 TIGER]

As of now no one has gotten laid off. Alcoa has shut down 3 lines , but all employees are still at work cleaning and tearing out shut down lines. No one will be out of work for 30-60 days, then they will be eligible for unemployment, and I think workers with over 2 years will recieve sub-pay until they are rehired(not 100% sure on this ).Cross our fingers and hope no one loses their job in this economy.