Alcoa's boss says the decision to close the Point Henry aluminium smelter in Victoria and two rolling mills is dreadful but beyond the company's control amid tough economic conditions.
Managing director David Cransberg told reporters at the Point Henry facility in Geelong on Tuesday it was sad the company was ending its 50 years in the Victorian city.
"These are horrible decisions to make," he said.
"We are proud of the contribution we have made to this community and the economy of Victoria.
"We thank governments at all levels over the years and the union movement who we had a very good relationship with.
"This is a significant and sad moment in our 50-year history."
Mr Cransberg said the forecasts for the next three years meant the company could not go to the government and say a stimulus package would keep them afloat.
"It would have taken considerable reinvestment in a 50-year-old plant," he said.
"Broader factors - currency and the price of metal - are not under our control.
He said a high Australian dollar and waning global aluminium prices were among the main contributing factors to the closures, which are expected to affect up to 1000 workers.
Aluminium is now fetching $200 per tonne less than it was two years ago, he said.
Mr Cransberg said workers had tried to cut costs and increase productivity over the years.
"Unfortunately it's the things we cannot control," he said.
Australian Workers Union National Secretary Paul Howes told reporters now is not the time for finger pointing.
"There is nothing the government could have done to stop this announcement today," he said.
"This is not about pointing fingers.
"Let's sit down and develop a plan that ensures we still have viable sectors, like aluminium, which adds value to our natural resources in the long term."
