State senator blames unfair trade laws for Noranda's woes

Unfair trade laws are to blame for Noranda Aluminum's recent layoffs, according to Doug Libla, state senator for the 25th District of Missouri.

"Power rate is very important, but don't forget the selling price of the products that they're making," Libla said. "You can't sell products that you manufacture under your costs for very long. It's affecting not only Noranda, but all manufacturers and businesses all over America."

The New Madrid, Missouri, smelter isn't the only aluminum company that recently reported staff reductions and plant closings.

On Jan. 7, Alcoa Inc. announced by the end of the first quarter of 2016, it will close Warrick Operations in Evansville, Indiana, one of the biggest aluminum smelters in the U.S. By the end of the second quarter, Warrick will curtail production at its refining plant in Texas as well.

"Despite the hard work of employees, these assets are not competitive," Roy Harvey, president of Alcoa's Global Primary Products, said in a news release.

"It's nothing new in the United States," Libla said. "It just happened to hit in my area, in Southeast Missouri."

On Wednesday, Noranda Aluminum Inc. announced a layoff of 350 employees at the company's New Madrid aluminum smelter by Feb. 4.

This is in addition to a workforce reduction involving 190 employees, 75 percent of which would come from the New Madrid site, initiated that same day.

In a news release on the company's website, Noranda cited low aluminum prices, the idling of two pot lines at the New Madrid facility and other business issues as the reasons for the new round of layoffs.

Smelter employees also were notified the site's remaining operations will be curtailed on or before March 12 unless a more sustainable electrical-power rate can be secured and the company improves its liquidity.

"I will be doing what I can in Jefferson City to help make sure Noranda has an opportunity to survive this thing. But there's only so much we can do in Jefferson City," Libla said. "Unless we get something done in Washington, D.C., we will continue seeing ... job losses here in this country."

Before the layoffs, Noranda hired more than 900 people, providing jobs not only for Southeast Missouri, but beyond state lines, bringing in workers from western Kentucky and western Tennessee.

"They were the largest employer of the area, and their people are an important part of the community," New Madrid Mayor Donnie Brown said. "We hate to see anyone lose their jobs, but that number of people -- it's really devastating to small towns."

"It's a sad, sad day," Libla said. "That company's been there for several generations, providing value employment in Southeast Missouri."

bbrown@semissourian.com

(573) 388-3630

Pertinent address:

391 St Jude Industrial Park Hwy, New Madrid, MO 63869