Alcoa announced two weeks ago that it was shutting down its Rockdale smelter, and would lay off about 660 employees during the next three months. The curtailment affects employees in every department, said Alcoa spokesman Jim Hodson.
The layoffs also mean that Milam County could lose $102 million from its tax roll from the plant, according to the Milam County Appraisal District.
The next and final wave of layoffs of 100 people affected by the shutdown in June of three potlines will occur Sunday, Hodson said.
In the latest shutdown, the first group of smelter employees will lose their jobs Nov. 30, Hodson said.
As of Tuesday, two potlines were still operational, with one to stop production Friday, and the final potline Nov. 7.
Milam County Precinct 3 Commissioner Dale Jaecks said Tuesday that in an effort to assist employees and communities affected by the shutdown, he rallied representatives from the Central Texas Council of Governments, Capitol Area Planning and the Brazos Valley Council of Governments - agencies that serve the 18 counties where Alcoa employees live - to work on programs that could aid the unemployed and possibly bolster economic development by bringing in companies.
Jaecks said a number of former Alcoa employees already have found jobs at other Alcoa locations, or in the oil patch.
Jim Reed of the Central Texas Council of Governments that serves Milam, Bell and surrounding counties, said Tuesday that economic adjustment assistance grants are used to address the needs of distressed communities experiencing adverse economic changes that may occur suddenly or over time, and generally result from industrial or corporate restructuring.
Grants help organize and carry out a planning process to develop a Comprehensive Economic Development Strategy tailored to the community’s specific economic problems and opportunities, Reed said. Awards may be used for the development strategy’s preparation, site acquisition and preparation, construction and equipping facilities, technical assistance and other activities, Reed said.
Milam County Judge Frank Summers said the smelter shutdown “has caused a great deal of concern among many in the area.”
“There is no doubt Milam County will feel the effects of the closure,” Summers said. “Some have referred to it as ‘disastrous’ effects, but I am not too sure that is the right adjective to use in this situation. Then, again to the family that depended on Alcoa to pay their bills it is much more than a disaster.”
Some of the things to be considered include a reduction in sales tax, fewer sales for businesses in the area, depressed housing market due to the number of homes that could be on the market and depressed ad valorem taxes due to lower appraised values for the city, school and county, Summers said.
The Milam County Appraisal District has projected that Milam County’s tax roll will see an 85 percent reduction in its tax roll from the plant that was valued in 2008 at $120 million. Alcoa will pay Milam County $626,897 in 2008 taxes; $1.2 million to the Rockdale school district; and $9,128 to the Thorndale school district, Summers said.
“The bottom line is the Alcoa we have known for 56 years is gone. Milam County is still here and we will survive,” Summers said. “There will certainly be some challenges ahead and working together we can identify ways to best meet the challenges that lie ahead. Time to move forward and look to the future.”
The company cited an uncompetitive power supply and overall market conditions as the reason for the curtailment. Alcoa has sued Luminant over power supply issues. Alcoa’s Rockdale Operations will continue manufacturing aluminum powder and its carbon plant will remain open, with about 140 employees remaining on the job.
