Ormet shuts La. terminal, smelter at full capacity

NEW YORK, Jan 18 (Reuters) - Ormet Corp. (ORMT.PK), a closely held U.S. aluminum producer based in Hannibal, Ohio, closed its Burnside, Louisiana, terminal and laid off the 30 people working there on Jan. 11, a company spokeswoman said.

Ormet said it closed the terminal to reduce overhead.

In a notice on the primary aluminum maker's Web site, Tommy Temple, vice president of alumina and engineering, said the facility had served Ormet's Burnside alumina plant, which closed in late 2006.

The terminal also provided third-party stevedoring services on the Mississippi River. But with the alumina plant closed, Temple said, there was little demand for loading and unloading ships at the terminal.

"We've entertained a number of business proposals for lease or purchase of the terminal. None have been successful," Temple said.

The Burnside property include a bulk marine terminal and a large stretch of land.

In another cost-cutting move, the spokeswoman said, Ormet recently laid off six of the 12 people working at the idled alumina plant for maintenance and upkeep.

Ormet shut the alumina plant and laid off about 250 people at the end of 2006 because of a downturn in the prices for alumina, a basic material used to make aluminum, and a rise in natural gas prices.

Separately, Ormet's spokeswoman confirmed that the Hannibal aluminum smelter was completely up and running. At full capacity, the Hannibal plant produces 260,000 tonnes of primary aluminum per year.

On a Dec. 19 conference call, Ormet Chief Executive Officer Mike Tanchuk said the company restarted the last of its smelter's six potlines on Nov. 28, and expected a full pot count in the line by the end of 2007.

Ormet's smelter was idled in 2005 following a bankruptcy filing and a prolonged labor strike. In December 2006, under new management, the smelter restarted its first potline, gradually ramping up to full capacity by the end of 2007. (Reporting by Carole Vaporean; Editing by Christian Wiessner)