Columbia Falls Aluminum to shut down

The Associated Press

The Columbia Falls Aluminum Co. on Tuesday gave employees 60 days notice that the plant will be shut down, eliminating about 200 jobs.

Low demand for aluminum plus a 9th U.S. Circuit Court of Appeals ruling that could lead to higher electricity prices contributed to the planned shutdown, CFAC spokesman Haley Beaudry said. The company is a major consumer of electricity.

Employees of Columbia Falls Aluminum, which is owned by Switzerland's Glencore AG, were notified Tuesday morning.

The 60-day notice is required under a federal law that guarantees workers will be paid for 60 days, though the plant could close sooner.

In July, CFAC shut down one of its pot lines and laid off 125 employees, citing soaring energy prices. Since then, hundreds of workers in the Flathead Valley have been let go from Plum Creek Timber Co., Semitool Inc., Goose Bay and the Troy Mine.

"We're going to stop producing aluminum and whether or not we restart some time depends on the situation," Beaudry said.

The mood among the plant's employees was somber but the work continued, said Dave Toavs of the Aluminum Workers Trade Council, the union representing them.

"We're running business as usual," Toavs said. "We're still making metal."

Beaudry said further information about the closure may not be available until after the holidays. The company informed the governor's office of the layoffs.

"It's too early to know what all is going to happen," Beaudry said. "Nothing is in place yet, but we have qualified for certain federal retraining programs in past cutbacks."

Among Montana's counties, Flathead County ranks relatively high in unemployment. It's November rate was 7.3 percent, compared to 4.9 percent for the state and 6.7 percent for the nation.