600 Alcoa jobs in Victoria set to be saved

Prime Minister Julia Gillard is reportedly poised to announce a plan to save 600 jobs at an embattled Victorian aluminium smelter.

Ms Gillard, who is flying back to Australia from a UN summit, will unveil a multi-million-dollar deal to secure the future of Alcoa’s smelter at Point Henry, near Geelong, and could do so as early as this week, News Limited reports.

The company announced in February it would review the viability of the smelter because low metal prices, a high Australian dollar and input costs had made it unprofitable.

Employees were told they would have to wait until the end of June to find out whether they would keep their jobs.

The Victorian government on Saturday confirmed details of a joint state and federal package of support for the plant.

“Since Alcoa announced the review of the Point Henry plant earlier this year, the Victorian Government has been in discussions with both the Commonwealth and Alcoa,” a State Government spokesman told the Sunday Herald Sun.

“This package also includes funding to support the Alcoa supply chain and to assist the broader Geelong manufacturing industries to diversify and grow their businesses.”

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