Albemarle to slash 300 jobs, cut back production at Kemerton site amid struggling lithium market
The decision by Albemarle to cut about 300 jobs from its South West Kemerton site is “unacceptable”, according to the union representing workers.
Albemarle announced on Thursday it would be cutting jobs down to 460 positions, stopping construction of train three, halting train two and prioritising train one.
The Herald understands workers were sent home from work on Thursday morning and have been given the week off while a decision is made on which jobs will be cut.
Australian Manufacturing Workers’ Union State secretary Steve McCartney said the job cuts were not good enough.
“Albemarle turned up in the South West in 2020, promising that they would provide secure, well-paid jobs of the future for manufacturing workers,” he said.
“All they’ve done in that time is either put workers’ lives at risk or sack people at the drop of a hat.
“It’s unacceptable that Albemarle has not consulted with anyone except their masters back in America before making these decisions.
Camera IconAMWU secretary Steve McCartney. Credit: Daniel Wilkins/The West Australian
”South West manufacturing workers are unlikely to ever have the confidence again that working at Albemarle is worth the hassle or the risk.”
The news follows a tumultuous time for the lithium industry as the price of lithium hydroxide has fallen 80 per cent over the past year.
In January, Albemarle announced it would be cutting about 150 jobs as it pulled the pin on train four construction.
South West MLC Steve Thomas reacted to the job-cutting news last week, saying the decision reflected a difficult time in the lithium industry and renewed his calls for greater investment in the Kemerton industrial site.
“As I have previously said, greater investment in strategic industrial areas to promote processing is needed,” Dr Thomas said.
“While I welcome the $500 million set aside in the budget for this purpose, far greater detail is required.
“In particular, investment in the services and infrastructure at Kemerton industrial estate must be a high priority.
“Given today’s announcement I would have thought this could now be considered urgent.”
As part of the Thursday announcement, an Albemarle Australia spokesperson said the decision was driven by the market, not government policy.
“Today’s decisions regarding Kemerton are entirely due to market conditions and the commercial realities that lithium prices will stay lower for longer,” they said.
“This has nothing to do with State and Federal government policies.”
Camera IconAlbemarle chief Kent Masters. Credit: Ross Swanborough/The West Australian
Albemarle chairman and chief executive Kent Masters said the decision would allow the company to remain competitive globally.
“The long-term growth potential for our end markets remains strong, and we plan to leverage our core capabilities while ensuring we remain competitive,” he said.
“Given the dynamics of the global markets we serve, we must be able to pivot and pace as necessary to maintain our leading position.”
The news came as the company posted a $287m loss for the June quarter.
Federal Resources Minister Madeleine King said the Government held concerns for workers facing the chop.
“The decision by Albemarle to downgrade its lithium hydroxide processing operations in Western Australia underlines the continuing volatility of international critical minerals markets,” she said.
“Our immediate concern is for the workers and the local community impacted by this decision.
“The Government notes Albemarle has committed to support workers affected and to work with unions and the local community.
“As Albemarle has made clear, this decision is the result of global market conditions.
“Importantly, Albemarle has committed to improving production at one processing train at its Kemerton plant and believes there will continue to be lithium hydroxide processing in Kemerton well into the future.”
#Albemarle #slash #jobs #cut #production #Kemerton #site #struggling #lithium #market