All or nothing: Goldendale Aluminum says changing market means both plants must run at full capacity
12 workers hired back on; Wilcox in negotiation with BPA
by Jody Allard
of the Sentinel
Despite an uncertain future, Golden Northwest Aluminum has taken tentative steps toward re-opening the Goldendale Aluminum Company and Northwest Aluminum at full capacity by hiring back nearly a dozen workers.Mac Seyhanli, vice president of Goldendale Aluminum Company and CEO of Golden Northwest Aluminum, said the GAC has been working on a power package with the Bonneville Power Administration that would enable both plants to re-open at full capacity.
Earlier plans to re-open half the Goldendale plant -- with a $37 per megawatt-hour power purchase option for half of the plant's energy needs obtained from the BPA in late 2000 -- are simply not feasible with the high cost of power combined with continued low aluminum prices, said Seyhanli.
"There's no reasonable metal price for us so we can break even at that price," said Seyhanli.
The company's new plan is to broker a less expensive power contract for the second half of the plant's power needs and re-open both plants at full capacity.
"Our owner, Brett Wilcox, is trying to see if we can get a financially feasible power package to get both plants up," said Seyhanli.
GAC executives hope a less expensive contract -- under $30 per megawatt-hour -- for the other half of the plant's energy needs will enable the company to average a feasible power price. The company's previous contract with the BPA, which expired in 2001, was for $22 per megawatt hour.
"If we're going to start, we need to start with full plants," said Seyhanli.
Seyhanli said Wilcox is also attempting to obtain a lower power price by offering to reduce the plant's energy consumption when necessary to "meet the BPA's needs."
Up until this point, a minimal crew has been maintained to prepare one-half of the plant for operation. With the change in focus, Seyhanli said nearly a dozen workers have been hired back on to ready the second half of the plant.
"Just to be on the safe side, we have hired some people back on," said Seyhanli. "We're trying to get ready in case he [Wilcox] gets the package ready and we're ready to roll."
Al White, GAC human resources, emphasized that the 12 workers have been hired for no more than 90 days.
"There have been a couple of handfuls of people that have been recalled on a temporary basis," said White.
According to Brian Skeahan, general manager of the Klickitat PUD, the BPA released information last month that points to a slight drop in power prices in April. Prices are expected to fall from 3 cents per kilowatt-hour, to 2.8 cents.
For now, the GAC is continuing to negotiate with the BPA for the second half of the plant's energy needs.
"We are trying to figure out how to start up and when, between now and summer," said GAC Vice President of Energy Gerry Miller.