Opening of Alcoa hydrated alumina processing plant at Kwinana

21/6/95

An ingredient used in many products from water filtration and toothpaste, to an environmentally friendly substitute in washing detergents, will now be produced by Alcoa as a part of a $43 million venture announced today.

Resources Development Minister Colin Barnett officially opened Alcoa's hydrated alumina processing plant which is set to boost WA's exports by about $45 million a year and will provide Australia with a new world competitive market.

The Minister said the hydrated alumina to be processed by the new plant - built next to Alcoa's Kwinana refinery - would be extremely high grade and would be predominantly used in products requiring a high degree of brightness, such as in paper production and toothpaste.

It could also be used for water filtration and as a filler for such products as plastics, or as a fire retardant in carpets.

Mr Barnett said another prime use could be in the production of zeolite which would provide an environmentally sound alternative to phosphates in detergents.

"This processing plant is yet another example of how companies such as Alcoa can diversify their production base to create a higher quality product for specialist markets both in Australia and overseas," Mr Barnett said.

The Minister also said the production of such a high-grade product had the potential to attract several new industries to the State or could help to expand existing industries.

Mr Barnett said the production of alumina hydrate meant a chemical company could use the hydrated alumina as a feedstock to produce zeolite for washing detergents. Equally, a paper manufacturer or a plastics company could be established in WA to make use of the product.

Alcoa has produced hydrated alumina as a part of the refining process for the past   30 years.

However, the initial product was limited by its lack of colour and brightness and could not compete on world markets including Asia, Europe and North America.

"This new phase of further filtering the hydrated alumina will allow the product to have a far wider application and will help Alcoa to gain an increased share of this specialised market which is mainly centred around Asia, Europe and North America," Mr Barnett said.

The new plant consists of a multi-stage filtration and purification plant which will further remove impurities resulting in a product with a higher brightness and low colour absorbency.

Alcoa expects the plant to produce about 270,000 tonnes a year of hydrated alumina.

Mr Barnett said the State's alumina market already accounted for 70 per cent of national production and, based on current prices, processed alumina would be worth about $2 billion this year.

Media contact:  Carolyn Vicars (09) 222 9699