SMM: Alcoa (Alcoa) said on Thursday that it is considering cutting up to 534 jobs at its San Ciprian aluminum plant in Galicia, Spain, but has not made a final decision.
Alcoa said in an emailed statement that high energy costs and low aluminium prices had led to persistent losses, making it impossible for the plant to compete internationally.
According to union representatives, the factory currently has about 2000 workers.
Earlier, Japanese car giant Nissan said it would start closing its Barcelona plant in December, putting thousands of jobs at risk.
The combination of the surge in unemployment and the possibility of a severe recession in the United States in the wake of the new crown virus pandemic has dealt a major blow to morale in the United States.
Worker representatives will hold three weeks of talks with Alcoa management to discuss the challenges facing the plant and options available.
"No decision will be made until the end of the consultation period," Alcoa said.
In an interview, union representative Jose Antonio Zan attacked the company's actions as "shameful" and the government's failure to support energy-intensive industries.
"We have been demanding stable energy prices for a long time and we have always said that we have to support power-intensive industries, just like the rest of Europe," he said. "
The total number of employees at the, San Ciprian aluminum plant, including contractors and employees, is about 2000, he added.
Francisco Conde, economic counsellor for the Galicia region, also criticized the government's inaction.
"Alcoa's decision is a response to the lack of initiative and response from the Spanish government with a view to establishing a competitive electricity price to produce primary aluminum," he said. "
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