New Zealand Aluminium Smelters to temporarily reduce production at Tiwai Point smelter

New Zealand Aluminium Smelters Limited (NZAS) commenced temporarily shutting down capacity by approximately five per cent at its 350,000-tonne Tiwai Point smelter in Southland, New Zealand, today due to electricity market conditions.

"This immediate action will result in a reduction of 30MW of power demand, which corresponds to an aluminium production decrease of approximately 1,400 tonnes per month. We will continue to monitor the situation," said Paul Hemburrow, NZAS General Manager.

"We have been reducing power consumption wherever possible for several weeks now. The current electricity market conditions and our discussion with the power supplier, Meridian Energy, have led us to take these measures," Mr. Hemburrow added.

Electricity represents a major portion of the operating costs at the smelter. NZAS has a long-term contract with Meridian Energy for the supply of electricity, but is exposed to the current market conditions for around ten per cent of its power requirements.

"We are working with customers and suppliers to ensure that any adverse impact to current production schedules is minimised," Mr. Hemburrow said.

NZAS is a joint venture owned by Rio Tinto Alcan (79.36 per cent) and Japan's Sumitomo Chemical Co. (20.64 per cent). The smelter employs 920 people and its total export revenue in 2007 was in excess of NZ$1.1 billion.

For more information contact:
Diane Collier on 027 218 7314

New Zealand Aluminium Smelters to temporarily reduce production at Tiwai Point smelter due to electricity market conditions [PDF: 13 KB]