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The decision follows a consultation process with the local employees.
“After consulting with the workforce and the unions, we have come to the conclusion to close the remaining two production lines at Kurri Kurri,” Hydro primary metal executive vice-president Hilde Merete Aasheim said.
The company cited the weak macroeconomic environment, with low metal prices, uncertain market outlook and overcapacity in the aluminium industry as reasons for the closure.
The plant employs 344 people, with more than 300 people now being made redundant.
Kurri Kurri produces 120,000 tonnes of aluminium per year from two potlines.
In February, the company curtailed production from the third potline.
The process to close the remaining two potlines will start shortly and may take up to three months.
The announcement comes after two weeks of uncertainty surrounding the plant after Norsk Hydro said it was considering closing down operations.
This article first appeared in ILN's sister publication MiningNews.net.
