Kaiser Mead plant shuts down due to power shortage

Kaiser Aluminum and Chemical Corporation is shutting down its Spokane Mead plant to ease the energy deficit in the Pacific Northwest.

KREM 2 NEWS

The announcement of the closure, made early Sunday morning, states that the Mead plant will be shut down temporarily while the company will continue to run its Trentwood plant in the Spokane Valley. The shutdown is expected to be complete within several days.

Kaiser is planning to sell the power provided by its existing contract with the Bonneville Power Administration until October 2001, when it a new contract with the power company will take effect.

"The Northwest region needs energy now to cover its deficit, and we have energy that we believe can benefit the region and its residents," said Raymond J. Milchovich, president and chief executive officer of Kaiser Aluminum. "At the same time, we intend to mitigate the impact on our employees and improve Kaiser's financial position."

About 400 jobs will be effected by this recent announcement. Kaiser intends to maintain a salaried workforce at Mead during this time. The company also plans to provide for some of its employees between December and next October. Hourly employees will receive additional compensation in accordance with its labor agreement.

"We plan to work together with our employees and others to continue to communicate about the region's energy crisis," Michovich said. "Our longer-range efforts also could potentially include involvement in economically viable power generation projects that address the supply deficit, accommodate regional growth and preserve industry jobs."

The company is also planning for additional power sales from the 10-month closure.