KAISER INC. of the USA yesterday announced that nine of its wholly-owned subsidiaries had filed Chapter 11 bankruptcy protection there. These include the legal entities through which Kaiser owns interests in Jamaica.
The announcement comes on the heels of last week's announcement by Alcoa Inc., parent company of Jamalco, the alumina refinery at Halse Hall, Clarendon, that it would speed cost-reduction initiatives and cut some 8,000 jobs worldwide.
Alcoa's spokesmen have since addressed local concerns by stating that the decision would not affect jobs here, or derail the proposed US$115 million expansion at Jamalco, Clarendon, which has already started.
But yesterday's announcement by Kaiser Inc in Houston, Texas, has again raised fears about the future of the bauxite-alumina industry which is facing a difficult market environment in which demand has been weak and well below supply.
The company said that from an operating perspective, the Chapter 11 filings were a non-event and said that its local investments Alpart, the alumina refinery, and KJBC (Kaiser Jamaica Bauxite Company) - were not directly included in the filings.
Kaiser added that the filings were not prompted by cash flow concerns, business conditions, or balance sheet issues and should have no impact on the day-to-day operations at Alpart or KJBC, or the rest of Kaiser, its employees, customers, and suppliers.
"They will not interfere with the ability of Alpart or KJBC to continue to make payments in the normal course of business (including payments of pre-petition amounts) to creditors and others for items such as materials and supplies, freight, taxes and, of course, salaries, wages, and benefits for employees," said Jack A. Hockema, Kaiser's president and chief executive officer, in a statement yesterday.
