Reuters reported that Alcoa Australia was reviewing the future of its 190,000 tonne Point Henry aluminum smelter as tough global economic conditions have rendered the operation unprofitable.

Alcoa said the aluminum industry had been severely impacted by difficult macro economic conditions with the higher Australian dollar placing increasing pressure on the market.

Mr Alan Cransberg MD of Alcoa of Australia said that "A combination of factors including metal prices input costs and exchange rates, have resulted in the Point Henry smelter becoming unprofitable."

Aloca's Point Henry operations including the smelter and aluminum rolling mill employ around 900 people however the aluminum rolling mill is not included in the review.

Last month, Alcoa Inc posted Q4 loss due to a steep plunge in aluminum prices but its revenue beat expectations and the company gave a positive outlook for global demand for the metal, especially in the aerospace and automotive markets.

(Sourced from Reuters)