Alcoa confirms permanent shutdown of Kwinana refinery near Perth
US aluminium giant Alcoa has confirmed there is no sustainable path to restarting its Kwinana alumina refinery in Western Australia. After winding down production in early 2024, the company said the facility will not reopen and will instead proceed with a long-term plan to close and redevelop.
The company began phasing out its workforce at Kwinana in January 2024. A regional economy expert had previously estimated that the wind-down could take roughly $650 million off Western Australia’s economy each year, underscoring the significance of the decision for the state’s industrial landscape.
Why the decision was made
Assessing restart versus closure
In a statement, Alcoa’s chief operations officer, Matt Reed, said the company evaluated the refinery’s future “including restart and closure” and concluded that there was no viable, sustainable path to restarting the operation after exploring multiple options. He characterised the move as a “commercial decision” grounded in the facility’s age, operational costs, and market conditions.
Reed reaffirmed the company’s commitment to Western Australia by noting that Alcoa would continue to operate two other large refineries in the state, even as Kwinana ceases production.
Impact on workers and Western Australia
Workforce reductions
At the start of 2024, Kwinana employed around 800 people. By the time production wound down, the workforce had been reduced to about 220 employees, with most roles slated to disappear gradually. Some staff will remain beyond 2026 to manage the site ahead of future redevelopment plans.
Alcoa has said it would invest approximately US$890 million in restructuring and related charges in the third quarter of 2025, followed by another US$600 million over the next six years to manage closure costs. The measures reflect a long transition, not an abrupt shutdown, and are aimed at addressing the economic realities of exiting the facility.
Capacity and production context
The Kwinana refinery accounted for about 16% of Alcoa’s global refining capacity when it was operating at higher throughput, with a total capacity cited at 13.9 million tonnes. With the shutdown, the company’s reported capacity has shifted, now effectively reflecting 11.7 million tonnes across the rest of its operations. Alcoa has been refining alumina in Western Australia since the 1960s, making Kwinana a long-standing pillar of the region’s metal industry.
Industry and regional responses
Industry reaction
The Kwinana Industries Council described the closure as the “end of an era,” highlighting Alcoa’s historic role in the development of the Dampier to Bunbury Gas Pipeline and the broader energy security of local industry. The council called for “fresh thinking” and more nimble decision making to adapt the Kwinana precinct to growing global competition and domestic approvals hurdles.
Future opportunities for the precinct
Despite the closure, the council stressed that investment in renewables, critical minerals and batteries, defence industries, and advanced manufacturing could keep the Kwinana Industrial Area as a hub of activity. The Department of Environmental Protection Authority (EPA) is currently assessing Alcoa’s proposals to expand mining operations in Western Australia’s jarrah forests, a process that will shape the region’s environmental and regulatory landscape for years to come.
What’s next for Kwinana and Western Australia
The closure marks the end of a long era for Kwinana, but it also signals a turning point for how the precinct adapts to new economic realities. The WA government and industry groups will be watching closely as the EPA reviews expansion plans and as investors consider opportunities in renewables, critical minerals, and higher-value manufacturing. The challenge for the region will be to translate the “fresh thinking” advocated by industry bodies into tangible, timely projects that sustain employment and drive diversification in Western Australia’s economy.
