Aluminum Holding Corp. plans to slash about 190 people from its
work force, including contract workers, as it looks to cut
The cuts will happen
across the company, with most effective before the end of the
year, the Franklin, Tenn.-based aluminum producer said Dec.
"While this work force
reduction is difficult, it is a necessary part of our
commitment to continue to enhance our cost structure and create
shareholder value," Noranda president and chief executive
officer Layle K. "Kip" Smith said in a statement, noting that
the moves wouldnt affect customer service or ongoing
growth and productivity projects.
Further job cuts might
be necessary, although Noranda will try to avoid them, a
company spokesman told AMM via e-mail. "Our desire is
for this to be the only work force reduction, but we will
continue to examine business conditions, as well as our ability
to reduce our costs through other measures."
The announced layoffs
are expected to cost Noranda $6 million but save the company
$15 million annually, the company said. Most of the $6-million
charge will result from one-time termination benefits expected
to be recorded in the fourth quarter of 2013 and paid in the
first quarter of 2014.
The cuts will affect
approximately 75 people in Norandas primary aluminum
business and 30 to 40 employees each in its alumina, bauxite
and flat-rolled products operations, as well as 10 employees
with corporate functions, Noranda said.
location of the layoffs generally follow the center of
operations for each business, the company spokesman said.
is based in New Madrid, Mo.; its alumina refinery is in
Gramercy, La.; its bauxite mine is in St. Ann, Jamaica; and its
headquarters are in Franklin. The flat-rolled cuts, mostly at
Norandas Huntingdon, Tenn., rolling operations, will be
achieved largely through attrition, the spokesman said.
The work force cuts
come as part of previously announced cost-cutting plans and
after Noranda earlier this year issued a Worker Adjustment and
Retraining Notification (WARN) Act notice for 58 workers at its
rolling mill in Salisbury, N.C., effective Dec. 30 (
amm.com, Nov. 15).
measures, referred to by Noranda as the "CORE productivity
program," aim to save the company $225 million between 2014 and
Noranda had about
2,500 employees as of Nov. 30, the company said.
The layoffs also
coincide with historically low aluminum prices. The London
Metal Exchange cash primary aluminum contract ended the
official session Dec. 17 at $1,745.50 per tonne (79.2 cents per
pound), 17.8 percent below a 2013 high of $2,123 per tonne
(96.3 cents per pound) on Feb. 15.