Noranda Aluminum Holding Corporation, a leading producer of value-added primary aluminum products, has been facing declining revenue, been forced to lay off employees, deal with rising energy costs, and most recently, a major reduction in aluminum production capacity resulting from a loss of incoming electrical power caused by the ice storm in late January. But company officials are making strides to remain a sustainable business - and getting some help from the General Assembly along the way.
"We recently lost 75 percent of our production capacity as a result of losing incoming power to our facility. All of our employees remain on the job trying to restore our plant to normal operating levels," said Keith Gregston, president and general manager of the facility. Following 228 layoffs beginning in November, due to economic conditions, there are now just over 900 workers there.
Since July, the price Noranda receives for its aluminum has decreased from $1.49 per pound to about 60 cents per pound today, said Gregston. And since the Public Service Commission recently made a decision to grant AmerenUE a rate increase, the largest customer of the utility company, faces an increase in what it pays for electricity each year.
"That is the main expense for them," said state Rep. Steve Hodges, a Democrat from East Prairie. "They have negotiated a good, lower rate, but for them to be successful and keep the jobs that they have and stay competitive ... it may not be good enough."
The thought of losing a business such as Noranda has motivated Hodges and other state legislators to work with the company.
"If we lost Noranda, I cannot imagine the financial impact it would have in Southeast Missouri," said Hodges. "Through taxes, Noranda annually provides $2.5 million to the New Madrid County Schools."
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