Missouri Governor Details Plan To Provide Workforce Training, Retain Hundreds Of Jobs At Noranda Aluminum

Gov. Nixon announces Noranda returning to full capacity, has rehired 38 laid-off workers

September 30, 2009 -- NEW MADRID, Mo. - Missouri Governor Jay Nixon today visited the Noranda Aluminum plant in New Madrid to announce that the plant has rehired 38 laid-off workers and is returning to full production, following months of reduced capacity caused by January's ice storm. The Governor also unveiled the initial components of an $8 million economic development package that will help keep nearly 900 Noranda jobs in the Bootheel.

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One of the largest and oldest employers in southeast Missouri, Noranda has an impact of more than $370 million annually on the state's economy. In recent years, however, Noranda has suffered from a global decrease in the price of aluminum and steep increases in the cost of production, and January's devastating ice storm reduced the plant's production capacity by nearly 80 percent for weeks. Rather than laying off employees because of these challenges, Noranda shifted approximately 300 workers from their regular production duties to other tasks, such as rebuilding portions of the plant and upgrading production lines.

Next week, the company will begin the process of restarting the third of its three lines. To prepare for this undertaking, 38 employees who were laid off in December 2008 because of the economic downturn have been rehired. In addition, workers who were shifted to other duties are preparing to return to the production line.

"Today, I'm thrilled to announce that Noranda has rehired 38 workers and is returning to full production," Gov. Nixon said. "The highly skilled steelworkers who run the Noranda plant are a vital part of the economic backbone of southeast Missouri. Together, we've overcome the challenges Mother Nature put in our way, and we've ensured that these men and women will continue to live and work in the Bootheel and help turn this economy around."

Gov. Nixon also detailed the initial elements of an economic development package that will help retain these jobs in southeast Missouri over the next 10 years. Additional elements of the package are still being finalized, but the Governor today discussed two central components:

Job Retention Training: Over the next two years, the Missouri Division of Workforce Development will invest $2 million to provide customized and detailed training to Noranda workers in a variety of areas, including computer skills, industrial maintenance, carbon processing manufacturing procedures and safety. To cover the costs of this training, a portion of the monthly withholdings tax collected by Noranda will be diverted to pay for instruction and materials. Three Rivers Community College, headquartered in Poplar Bluff, will operate the program.

Community Development Block Grant: The Missouri Department of Economic Development also has awarded a $1 million Community Development Block Grant, funded under the American Recovery and Reinvestment Act, to help Noranda upgrade its plant. The state awards these CDBG funds to New Madrid County, and the county, in turn, awards the funds to Noranda. This award will take the form of a forgivable loan; under the terms of the agreement, if Noranda retains the jobs pursuant to its agreement with the state, the loan will be forgiven. In the coming years, Noranda plans to expend a significant amount of capital to upgrade and modernize its production operations, and these funds will assist the company in retaining jobs throughout that process.

"To compete in the 21st-century economy, it's absolutely vital that Missouri workers have access to up-to-date, innovative job training," Gov. Nixon said. "I am pleased that we have reached this agreement to help enhance the knowledge and skills of Noranda's workers, while providing critical resources to help keep this major employer right here in our state. This agreement is good for Noranda, good for the steelworkers here in the Bootheel, and good for our entire state."

Gov. Nixon's administration is finalizing additional components of Noranda's economic development package, including Development Tax Credits and additional Community Development Block Grants. These funds will reduce the burden of additional capital Noranda has had to invest to purchase new equipment and transition back into full production following the ice storm. When finalized, this incentive package is expected to total about $8 million. Details of these final components will be announced when they are available.

Source: Missouri Governor