By Balford Henry, News Editor 
Dacosta
KAISER ALUMINUM'S board of directors has approved an expenditure of US$13.7 million (J$685 million) to improve efficiency and support a previously announced expansion of production capacity at Alpart's alumina refinery in St. Elizabeth.
The expansion will increase Alpart's production capacity from the current 1.45 million tonnes to 1.65 million tonnes. The spending covers two separate projects, both of which are scheduled for completion by the end of 2003: A new dual-feed system will enable the facility to more efficiently process different grades of bauxite and a new cooling system that will improve alumina quality.
The total cost of the two projects is estimated at US$21 million, 35 per cent of which is being funded by Alpart's minority interest owner, Hydro Aluminium AS.
In a release announcing the decision, Kaiser quoted the company's president and chief executive officer, Jack A. Hockema, as saying, "Continued capital investment in efficiency, quality and growth initiatives is essential for our ongoing efforts to strengthen the company and emerge from Chapter 11."
"These two projects, in particular, are key elements of Alpart's aggressive plan for significant improvements in operation performance and market position. The investment reflects our faith in the Jamaican government's commitment to support ongoing improvements in the competitive position of this key national industry. In addition, we are pleased with our board's approval and with the support that these projects have received from the committees with whom we are working in our Chapter 11 case," Mr. Hockema added.
The announcement was welcomed yesterday by Norman DaCosta, deputy island supervisor of the National Workers Union (NWU), which represents Alpart's hourly paid workers.
Mr. DaCosta said that the expansion was a significant investment that would provide an added opportunity to generate increased efficiencies, higher labour productivity and lower costs due to economies of scale.
He said that there would be additional benefits in terms of increased employment in the construction phase, as well as the introduction of dual feed technology which will enable the company to process the abundant supplies reserves of mono-hydrate bauxite available in Manchester and St. Elizabeth. The dual feed system will allow Alpart to process the more complex mono hydrate bauxite which is usually avoided by the mining companies.
However, he pointed out that the development should also be looked at in light of the fact that world metal prices and aluminium levels were still being influenced by unstable economic and market fundamentals.
Kaiser Aluminium Corporation, a leading producer of alumina, primary aluminium and fabricated aluminium products, owns 65 per cent of Alpart, while the other 35 per cent is owned by Hydro Aluminium AS.
Mr. Hockema said that the company's Chapter 11 filing on February 12, 2002, has not affected the way it is operating its plants.
On Tuesday, February 12, Kaiser filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code. Chapter 11 protection has provided Kaiser with the time and tools necessary to stabilise its financial structure and implement a plan to return Kaiser to sustained profitability.
