Russian firm in Limerick warns sanctions may spark job cuts locally
Staff in Limerick operate, maintain and support the Aughinish Alumina refinery, processing imported bauxite into alumina.
One of Limerick’s largest employers, the Russian firm Rusal has warned Government that placing any sanctions on it may spark job cuts in Aughinish.
In a rare intervention, managing director of the plant in West Limerick, Ciaran Kelleher wrote to Enterprise Minister Peter Burke warning at “the potential loss of employment” in Aughinish should sanctions be brought in.
In the letter, obtained by RTE News, it indicates that restrictions on exports to Russia “would leave Aughinish in a position where a significant portion of its alumina production would need to be curtailed, reducing efficiency and increasing unit costs".
This, he added, would make its "viability as a standalone 3rd party operation unlikely".
There are close to 500 people on the books at Rusal in Aughinish, with the company’s importance to the local economy being thrown into sharp focus following the move by Nestle to close its plant in Askeaton in 2023.
Staff in Limerick operate, maintain and support the Aughinish Alumina refinery, processing imported bauxite into alumina.
Concerns, however, have been raised, over this material allegedly ending up in Russian weapons being used for Vladimir Putin’s war in Ukraine, following a European-wide investigation by a consortium of journalists.
Unlike many Russian companies, Rusal’s operation here was not hit by sanctions, which are penalties designed to make it harder for a country, company or person to do business internationally. The main reason for this is alumina was not put on a designated list.
But with the war raging on for more than four years now, there have been calls to review this.
In a briefing document sent by Rusal to Government and seen by RTE News, Rusal executives state that Aughinish Alumina "exports excess electricity to the national grid, enough to power [circa] 200,000 Irish households".
The note also warns that Aughinish provides up to €25m each year for the maintenance of the natural gas grid - something which if sanctions were in place, Government would need to pick up the tab on.
Rusal has been lobbying to avoid sanctions following an investigation by a consortium of European media outlets, including the Irish Times, which claimed that alumina shipments from the Limerick-based plant to Russia were converted into aluminium in a number of Rusal-owned smelting factories in Russia.
In turn, the aluminium was allegedly sold on by a Moscow-based aluminium trader ASK to a range of weapons manufacturers, the reporting claimed.
Aughinish also warned that if the plant closed due to sanctions on alumina exports to Russia, then a number of aluminium smelting companies in Europe, including in France and Sweden, would have to severely restrict their operations alongside Limerick.