Noranda Aluminum returns to full capacity

MARSTON, Mo. -- Noranda Aluminum, one of the largest employers in Southeast Missouri, is returning to full production, Gov. Jay Nixon said at a ceremony Wednesday.

On a stage set up in front of the plant's administrative office, Nixon was accompanied by officials from both political parties, members of the United Steelworkers Local, officials from Noranda Aluminum Inc. and officials from Jamaica, where the bauxite used to produce aluminum is mined.

Nixon said the company has suffered from a global decrease in the price of aluminum and steep increases in the cost of production. Another blow came during the January ice storm, when power outages reduced the plant's production capacity by nearly 80 percent for weeks.

On Monday, Nixon said, the plant will "rev back up to full throttle" as it restarts its third production line. The company has rehired 38 laid-off workers; it employs about 900 total.

The governor also announced a $2 million job retention training program along with $1 million in stimulus funds to provide for upgrades at the plant.

"To compete in the 21st-century economy, it's absolutely vital that Missouri workers have access to up-to-date, innovative job training," Nixon said. "I am pleased that we have reached this agreement to help enhance the knowledge and skills of Noranda's workers, while providing critical resources to help keep this major employer right here in our state. This agreement is good for Noranda, good for the steelworkers here in the Bootheel and good for our entire state."

The Missouri Division of Workforce Development will invest the $2 million to provide customized and detailed training to Noranda workers in a variety of areas, including computer skills, industrial maintenance, carbon processing manufacturing procedures and safety. To cover the costs of the training, a portion of the monthly withholdings tax collected by Noranda will be diverted to pay for instruction and materials. Three Rivers Community College will operate the program.

Bud Joyner, Three Rivers director of career education and workforce development, said the college also hopes to deliver much of the training. Already Three Rivers is providing some of the technical skills training on the company's new equipment and will begin providing safety training for workers.

The $1 million Community Development Block Grant, funded by the federal stimulus package, will help the aluminum company continue upgrades. Noranda plans to spend a lot to upgrade and modernize its production operations, and the funds will assist the company in retaining jobs throughout the process.

The funding, in the form of a forgivable loan, was made by the Missouri Department of Economic Development to New Madrid County, which in turn awarded the funds to Noranda. If Noranda maintains the jobs for 10 years, the loan will be forgiven.

Nixon's administration is working on other incentives for Noranda, including development tax credits and additional grants, according to a new release from Nixon's office. The total package is expected to total about $8 million.

New Madrid County Presiding Commissioner Clyde Hawes said the announcements were good news.

"Maybe now employment might get back to normal," he said.