The US-based Alcoa Corporation has announced it would permanently close its Kwinana refinery, which curtailed production in June last year.

The refinery currently has about 220 employees, a number Alcoa said would be “reduced” during 2026 in the closure process.

Alcoa will close its Kwinana refinery in Western Australia. (Trevor Collens)

Some employees will remain beyond 2026 to prepare the site for future redevelopment.

Factors in the decision to shut down the refinery included the age of the facility, scale and operating costs, market conditions and bauxite grade challenges.

“Alcoa operated the Kwinana refinery for a number of years in a challenging environment and made the difficult decision to permanently close the facility after unsuccessfully exploring multiple options for a sustainable path to restarting,” Alcoa chief operations officer and executive vice president Matt Reed.

“We appreciate the dedication and support of our Kwinana employees, contractors and suppliers who have made a major contribution to Western Australia’s economic development and prosperity over more than six decades.”

Hundreds of jobs are at risk. (Trevor Collens)

The company will work with the WA state government on site redevelopment options and potential future land use.

Alcoa will also continue to operate its port and rail facilities at Kwinana, along with its other Western Australian and Victorian operations.