Alcoa Corp., a leading aluminum producer in the US, planned to fully decrease production at its Kwinana alumina refinery in Western Australia this year, and the process will start in the second quarter, including a phased reduction of the workforce.

The Kwinana refinery has an annual alumina production capacity of 2.2 million tons, of which around 85% is smelter-grade alumina. The refinery has been operating at roughly 80% of its nameplate capacity since last January of 2023.

Matt Reed, the executive vice president and chief operations officer of Alcoa, said that the decision was mainly due to the facility’s age, scale, operating costs, current bauxite grades, and market conditions.