Rio Tinto Alcan the Smelter plant at Lynemouth
MINISTERS have been urged to look at regeneration measures for South East Northumberland as the county prepares for Alcan’s closure.
Rio Tinto Alcan confirmed on Wednesday it is to close the Lynemouth smelter with the loss of 515 jobs.
The closure decision was partly down to two different pieces of environmental legislation which would have added bills to the site worth more than £74m by 2015.
And the pain is expected to be felt at more than just the site, as firms which had staked their lot on the continuation of aluminium manufacturing in Northumberland now face an uncertain future.
They include the Astec aquaculture business and science centre set up to two years ago to lead the way with research into fish farming and similar areas.
Astec benefited from a continual supply of warm seawater which had passed through Alcan’s site, allowing it to carry out year-round research into tropical fish and plants.
Kevin Haddrick, managing director at the research centre, said the money once available from the likes of development agency One North East to set up new firms would be sorely missed.
He said: “With the demise of the agency we have lost the sort of help you need just to get you through those early years.
“We are here in Northumberland because the 150 gallons of seawater a minute heated through the plant comes out at a tropical level, 12 degrees higher, and allows us to avoid so many barriers that get in the way of research.
“That is likely to go now and at the same time have seen the funding that was set up to help grow new firms disappear. This centre can stand on its own two feet, it just needs support to get from set-up stage to up and running.
“If there is a new buyer for the power station we would be eager to work with them.
“There will need to be a lot of thought put into what is done to help south east Northumberland.”
Rio Tinto faced a £46m bill from the European Union as a result of a carbon emissions trading scheme, plus a bill rising from £10m to £28m over three years as a result of the UK Government’s own carbon tax announced by Chancellor George Osborne in his budget last year. Despite these pressure unions have hit out at Rio Tinto for closing the site.
Keir Howe, GMB Northern regional organiser for Alcan, said: “We are absolutely devastated by the announcement to close the smelter site and get rid of the workforce. This will have a huge impact on our members, their families and the local community.”
Union bosses have questioned why the company did not wait until the Government unveiled its much-expected support measures to help offset bills facing energy intensive industries.
Mrs Howe said: “This decision by the company is a disgrace. They bought the company for several billions just a couple of years ago and it appears they are dressing up a strategic review and the decision to close, to disguise the money they paid out at the very time when the world recession was starting to bite. We want to know if public money was used to get Rio Tinto to buy in the first place and if so what is going to happen about that.”
Rio Tinto had no further comment.