Job cuts expected at aluminium smelter

The Tiwai Point Aluminium smelter is set to lay off 100 staff by the end of November.

It had planned to cut the jobs over five years, but the company's announced it's bringing forward plans to resize its business.

35 of the 100 jobs have already been cut.

New Zealand Aluminium Smelter General manager Ryan Cavanagh says the decision to speed up the job cuts has not been taken lightly.

He says economic conditions have led to the need to streamline services.

Bluff Community Board chair Jan Mitchell says there had been warning bells sounding.

"To do with power prices etcetera, and we knew things weren't great there but I certainly had no idea it was as bad as it was."

Jan Mitchell says not many of the workers are from Bluff, but the effect will be felt at the port.

EPMU spokesman Alan Clarence says it will devastate the Invercargill economy.

He says it'll see more workers head across the ditch.

"The last thing that Invercargill needs is for high-skilled workers to take those skills offshore, which is a very high possibility."

The chief executive of the Southland Chamber of Commerce says he was stunned when he first heard the news.

Chamber of Commerce CEO Richard Hay says its unfortunate that the New Zealand dollar and the reduction in the global market for aluminium have had such an affect.

He says for the good of Southland, its essential that the Tiwai Point smelter remains operating and productive. 

"They've got to continue to be an asset to the stability of the region's overall economy."

Photo: Supplied