Nyrstar has announced its Hobart zinc smelter will cut production by a quarter as it battles a downturn in the worldwide market. While the company says no immediate job losses are planned there are fears for the future of the facility – one of the worlds largest zinc smelters.
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00:00A mainstay of Tasmanian manufacturing to lie low, Neostar says its Hobart smelter will
00:08indefinitely reduce production by 25%, citing deteriorating market conditions and financial
00:15losses.
00:16We are absolutely in discussions with Neostar, obviously this is a concern.
00:23500 people are employed at the smelter, at this stage all will keep their jobs.
00:28A relieved union hopes the market improves before the axe falls.
00:33We understand that the strategy at the moment will last for a period of six months and will
00:38then be reviewed.
00:41Obviously global market conditions are having a significant role to play.
00:47Tasmania's peak business body says a flood of new smelters in China has distorted the
00:51market, threatening Neostar.
00:54These businesses have a great future, we just need to get through what is a global
00:58glip at the moment, it's a design of another country to try and corner a market.
01:03In the last federal election campaign, both Labor and the Liberals committed $50 million
01:08to an electrolysis project to improve energy efficiency at the smelter, while the state
01:14also committed $20 million.
01:16That project was started, but then put on hold last year.
01:20A spokesperson for Federal Industry Minister Ed Husic says commercial decisions are a matter
01:25for Neostar and that he's in constant dialogue with them, but that it was welcome news there
01:30would be no job losses.