Fears over job losses at major Limerick employer are played down
LIMERICK TD and Minister of State Niall Collins has played down fears of job losses at Rusal Alumina in Aughinish after holding talks with company bosses.
It comes amid a company filing from its directors and auditors providing a stark warning over the future viability of the Russian-owned West Limerick business due to Vladimir Putin’s war in Ukraine and its economic impact.
It’s seen the company rack up a net loss of over €363m in the year before the Ukraine invasion due to the rising price of gas.
These prices have surged once more due to the conflict, putting the firm under more pressure.
The document has again sparked fears for the almost 500 staff who work in Europe’s largest bauxite refinery, which produces 30% of the alumina metal used in the European Union (EU), mainly on aircraft.
In its report to the Companies Registration Office, it’s revealed Limerick Alumina Refining paid out over €46m in wages locally in 2021.
Documents show the parent company of Aughinish has pledged continued support until at least December 31, 2023, with directors declaring their “reasonable expectation” of trading over another 12 months.
Local TD Niall Collins, who holds regular meetings with Aughinish management, said: “They have told us, and nobody has disputed it, that within the Rusal global group, Aughinish is the most efficient. It obviously is involved in the manufacturing process of a commodity for which there is a huge global demand.”
Earlier this year, Aughinish Alumina received approval from An Bord Pleanala to expand the capacity for two of its by-products, bauxite residue and salt cake, by raising the heights they are stored at. At that time, agents for the firm stated that without this permission, it would need to wind down operations in Limerick by 2030.
Due in part to its strategic importance to Limerick and Ireland, the Aughinish operation has avoided sanctions from the EU while moves were made earlier this year to separate key shareholder, and Kremlin-linked Oligarch Oleg Deripaska from the company.
Former mayor, Cllr Stephen Keary, who is the leader of the district in which the local alumina refinery is based said he is “extremely concerned” to read the reports about its viability.
“It’s been a fantastic employer for West Limerick and North Kerry. If anything were to happen to it, it would be the death knell for the area. A lot of people that are employed there would have a specific skillset and there would not be that opportunity for redeployment to a similar type of facility,” said Cllr Keary.
Chamber chief executive Dee Ryan added: “If anything were to happen – and we hope it doesn’t – it will be very challenging for people in that area to find equivalent work in the vicinity.”
Elsewhere this week, the full bi-monthly council meeting was disrupted by protestors who it’s believed were demonstrating over the expansion of Aughinish Alumina.
Three women seated in the public gallery made their way down to the stage, unfurling a banner saying "nature rights not nature crime".
Councillors were then moved to a smaller room in the University of Limerick – where the meeting this month took place – while security dealt with the protestors and deemed it safe for members to return to the chamber.
Rusal have been contacted for comment.