Noranda plans temporary closure of Gramercy alumina plant in May

Alumina manufacturer Noranda is delaying plans to cut jobs and close its St. James Parish plant after completing an expansion it hopes will spur business. The company warned more than 100 workers could lose their jobs if the efforts fail.

Noranda, based in Franklin, Texas, told state officials in January it would close the plant and eliminate 444 jobs in March.

Noranda has since completed a "fast track expansion" of the Gramercy plant's capacity to produce non-metallurgical and chemical grade alumina, according to an updated notice the company filed March 9 with Louisiana workforce officials.

Noranda said it would temporarily close the Gramercy plant in mid-May if those measures fail to spur business. The closure would result in 113 jobs lost.

The Gramercy plant extracts alumina from raw bauxite mined in Jamaica. The alumina is sent to a smelter facility in Missouri where it is used to make aluminum.

Noranda blames several factors for the looming threat of closure at the Gramercy plant. Aluminum prices have fallen nearly 50 percent over the past five years to around 70 cents per pound in March. In December, the Jamaican government won a dispute over raising fees the company pays to export bauxite.

This year, a customer bankruptcy followed by a catastrophic loss of power that damage two of its Missouri pot lines brought orders from Noranda's smelter in New Madrid, Mo., the Gramercy plant's largest customer, to a grinding halt.

Noranda Alumina Holding Corp. filed for Chapter 11 bankruptcy protection in February. The company said its is actively seeking new customers to serve. For now, the Gramercy plant continues to operate at full production levels, according to the company's notice.

The notice clarified a potential closure at the Gramercy site would be temporary. Noranda will have two weeks to make a final decision on the closure starting May 11.