Idled Whatcom County Intalco smelter closure announced by Alcoa
In a “devastating” development for Whatcom County, the idled Alcoa Intalco Works aluminum smelter is closing, the company said.
In a statement released Thursday, March 16, Alcoa Corp. said the smelter west of Ferndale, where production was curtailed in 2020, will not reopen.
Alcoa instead “begins a process to prepare the site for new economic development opportunities,” according to the emailed statement.
Closure of the site that once employed more than 1,300 people ultimately came because the smelter “lacks access to competitively priced power and would have required significant capital expenditures to restart,” Alcoa said.
Cheap electricity is important because aluminum is extracted from its ore through electrolysis, a process that uses massive amounts of power.
In 1984, the smelter shipped a record 286,000 tons of the strong, durable and lightweight metal, which is key to the production of aircraft and consumer goods such as refrigerators, air conditioners and cooking utensils.
“I had friends, family and community members that had all hoped it would open up, so it’s really unfortunate,” Jon Mutchler, Ferndale city council member, told The Bellingham Herald in a telephone interview. “It’s unfortunate and certainly a tragedy for families who had relied upon that employer.”
Some of the remaining 19 employees will remain to assist with the closure-related activities and support services will be provided for others, Alcoa said.
Industrial zone
Whatcom County Councilman Ben Elenbaas, who represents the district that includes Intalco and the Cherry Point industrial zone, said he hopes that a factory or manufacturing concern can replace the smelter.
“If we can keep it as an industrial site and keep living-wage jobs, then this could be a good thing,” Elenbaas told The Herald.
“Obviously, we’ll do everything that we can to attract more living-wage jobs to the site,” he said in a telephone interview.
Elenbass also said that Alcoa should be responsible for any environmental issues that remain.
“Hopefully, the company does its due diligence in taking care of the site so that they leave it the way they found it,” he said.
Whatcom County Executive Satpal Sidhu said he was saddened by the closure news, but that he was excited about the possibility of new economic and business opportunities in the region west of Ferndale.
“The closure of Intalco marks the end of an era. The company was a supporter of local charities, and many families in our community greatly benefited from the smelter as employees and contractors,” Sidhu told The Herald in an email.
“It’s unfortunate that this positive legacy concluded so abruptly, sending our aluminum production capacity and jobs overseas. I look forward to hearing from the management of AltaGas about their plans for the newly acquired property.”
Energy deal
The closure is a “devastating” development for the 42nd Legislative District that encompasses northern Whatcom County, said state Sen. Sharon Shewmake, D-Bellingham.
In a text message from Olympia, where the Legislature is still in session, Shewmake told The Herald that the 42nd District’s entire legislative delegation sought to assist the beleaguered smelter to obtain a cheap energy deal.
“I worked with (state Rep.) Alicia Rule, (state Rep.) Joe Timmons, labor unions and others to ensure plans to re-open the facility had support from the state,” said Shewmake, who is an economics professor at the Western Washington University School of Business.
“But the inability to come to an agreement on electricity rates proved to be insurmountable. I wish Bonneville Power Administration had been able to do more to support the smelter, the opportunities for green manufacturing and the jobs it brought,” she said.
“I know people were still hoping for something better, myself included. I am ready to move forward and help support new opportunities for industry at the site. We need to build a green energy economy and I look forward to hearing ideas and plans to create good jobs that align with a cleaner and greener economy that works for everyone,” Shewmake said.
Ferndale impact
Ferndale Mayor Greg Hansen said he was not surprised by the closure.
“I think when Blue Wolf pulled out of their negotiations for a potential restart of the facility, I think the writing was on the wall,” Ferndale Mayor Greg Hansen told The Herald in a telephone interview. “While the city is certainly sad to see that chapter of its history close, at the same time I think we are optimistic that AltaGas out there will work on plans to start a new chapter.”
The recent closure announcement had more of a psychological impact, Hansen said. There were a lot of people with crossed fingers, hoping the facility would reopen, but that is no longer a possibility, he said.
The impact on the community was felt more in 2020 when the facility was curtailed and 700 employees were laid off, he said.
“Intalco is really a part of the DNA of the city of Ferndale,” Hansen said. “It has been one the main big industries that has fueled Ferndale’s growth and is truly an integral part of our community’s personality. Today’s announcement is a psychological impact. It is truly closing a chapter on one of the industries that built Ferndale.”
Blue Wolf plan
Blue Wolf Capital Partners were in talks to buy the facility, but needed to negotiate with the Bonneville Power Association, the agency that had provided power previously to the facility. However, these negotiations fell through in December 2022 when an agreement couldn’t be reached.
When negotiations fell through with Blue Wolf, the trade union International Association of Machinists and Aerospace Workers worked to set up another buyer with Alcoa. However, Alcoa decided not to sell the facility.
“Immediately after Alcoa refused to sell the smelter, I was made aware they were making preparations to permanently close the facility; which they publicly denied. The lack of transparency during this process has been frustrating, but is very typical of Alcoa,” union local representative Luke Ackerson told The Herald in an email.
There are currently 12 union employees working the facility, Ackerson said. For the last week, these workers have been painting and cleaning lunchrooms to be used by the demolition crews.
AltaGas sale
“The Intalco smelter site operated for nearly 55 years, and we’ve spent significant time evaluating options for the asset, including a potential sale,” said Alcoa President and CEO Roy Harvey. “Our analysis, however, indicates that the facility cannot be competitive for the long-term.
“The site is an important part of our history, and we are encouraged by the prospects for potential economic development via another entity that will own and control land at the site,” Harvey said.
AltaGas has acquired the rights to develop and own approximately 1,600 acres at the Intalco site, the Alcoa statement said. That sale includes transportation and utility infrastructure.
“AltaGas is currently exploring potential development which would align with Washington state and Whatcom County’s climate ambitions and provide long-term, sustainable benefits to the community and the local economy,” said Randy Toone, president Midstream at AltaGas.
“We understand the rich legacy and importance of this site to the community. We look forward to working with local stakeholders, Tribes and Alcoa to ensure potential development benefits the region and positively contributes to the ongoing energy transition.”
This story was originally published March 16, 2023 at 2:21 PM.
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