BHP Billiton To Stop Some Output From Bayside Smelter
June 30 2009 - 12:26PM
Dow Jones News
BHP Billiton Ltd. (BHP) will cease producing rod and billet from
its Bayside aluminum smelter, although production volumes from the
South African site won't change, a spokeswoman said Tuesday.
"Bayside has experienced a sharp decline in the domestic demand
for its value-add products, placing the operation's financial
viability at risk," Brownwyn Wilkinson said in an emailed reply to
questions.
She said the smelter, located in the coastal city of Richards
Bay, has informed customers it will continue to supply slab, but
will cease casting rod and billet from the end of September.
"Bayside management will continue to consult with union
representatives and employees who may be affected by this
restructure," Wilkinson said.
Aluminum producer Hulamin Ltd. (HLM.JO) earlier Tuesday said BHP
Billiton had agreed to continue supplying it with extrusion billet
until September and rolling slab until December 2010.
"Hulamin is assessing a number of options to ensure that its
future requirements in respect of extrusion billet and rolling slab
are satisfied, and that its growth plans are not affected," it
said.
The company sources about half of its billet and 30% of its
rolling slab from Bayside and produces the balance in its own
facilities.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com