Alcoa confirms permanent shutdown of Kwinana refinery
Alcoa, the US-backed aluminium giant operating in Western Australia, has confirmed that there is no sustainable path to restarting its Kwinana alumina refinery south of Perth. After winding down production in early 2024, the company said the facility would close permanently. The decision marks a major shift for WA’s industrial landscape and the broader Australian aluminium supply chain.
Why the refinery will not restart
In a formal statement, Alcoa’s chief operations officer Matt Reed explained that the company had assessed the “future of the refinery, including restart and closure” and concluded that there was no viable path to restarting. He cited the refinery’s age, high operating costs, and prevailing market conditions as central factors behind the decision. Reed emphasised that the move was a commercial decision and reaffirmed Alcoa’s ongoing commitment to Western Australia by continuing to operate two large refineries in the state.
Economic and employment impact
The Kwinana shutdown followed a phased workforce reduction that began in 2024. At the outset, the refinery employed around 800 workers; by the latest phase, the headcount stood at about 220, with most roles slated for gradual elimination. A number of staff will remain beyond 2026 to help prepare the site for potential redevelopment. The closure is expected to ripple through Western Australia’s economy, with estimates suggesting a multihundred-million-dollar impact on the state’s economy per year as the region adapts to the loss of a historic refining operation.
Costs and financial implications
Alcoa outlined substantial charges tied to the closure. The company projects US$890 million in restructuring and related charges in the third quarter of 2025, followed by an additional roughly US$600 million over the next six years to cover closure-related costs. Despite winding down Kwinana, Alcoa reiterated its long-standing link to WA, noting that it will continue to run two large refineries within the state.
What comes next for Kwinana and WA industry
The decision comes as WA’s Environmental Protection Authority weighs proposals to expand mining operations in the world’s only jarrah forests. In the wake of the refinery closure, the Kwinana Industries Council described it as the “end of an era” but underscored opportunities for future growth. Alcoa’s legacy includes contributing to critical regional infrastructure, such as the Dampier to Bunbury Gas Pipeline, which helped secure energy needs for local industry.
The council urged “fresh thinking” and nimble decision making to adapt the Kwinana industrial precinct to mounting overseas competition and domestic approval hurdles. While the refinery era ends, industry leaders point to potential investments in renewables, critical minerals, batteries, defence industries, and advanced manufacturing to ensure the Kwinana Industrial Area remains a hub of activity and innovation.
Conclusion
Alcoa’s permanent closure of the Kwinana refinery signals a significant reorientation for Western Australia’s energy-intensive manufacturing sector. While the facility’s closure removes a long-standing pillar of regional employment and economic activity, the region’s leaders hope the shift toward diversification—emphasising renewables, high-tech manufacturing, and critical minerals—will sustain WA’s role in the national economy and create new opportunities for workers and communities affected by the change.
