ALCOA STARTS THE YEAR WITH A GENERALIZED CUTBACK IN PRODUCTION
The international company Alcoa started 2023 with a decline in overall production. The cutback reached 30% of its working capacity at the Kwinani factory, located in the west of the Australian country. This specialized plant dedicated to alumina production has been affected by bottlenecks in the gas market.
Fuel shortages in the Australian region came into focus recently when a breakdown was discovered at Chevron’s Wheatstone plant. While many do not know that this facility fed approximately 16% of the Australian gas pipeline, now that it has been disrupted, it is easy to see why all eyes are on this site.
Alcoa is trying to deal with the crisis resulting from the temporary closure of the John Brookes offshore platform on Varanus Island. This decision was made in late November and repairs were expected to take about six weeks, but no progress has yet been reported. The company has therefore opted to implement a temporary switch to diesel as an alternative energy source.
Alcoa is thus cutting production sine die at a plant that has the capacity to generate 2.2 million tons of alumina per year. The Kwinani plant joins a list of facilities that have had to deal with similar measures in recent months as a result of the energy crisis.