Geelong will bounce back: Napthine

Geelong has a strong economy and will bounce back from the closure of Alcoa's Point Henry smelter, Victorian Premier Denis Napthine says.

The 50-year-old smelter served the Geelong community well, creating careers for many people, but was an old smelter by world standards and no longer viable, the premier said.

The high Australian dollar, the cost of production and the relatively low price for aluminium contributed to the plant's demise which was announced on Tuesday, the premier said.

Dr Napthine said he personally knows people who work at the plant and the planned August closure will be a devastating blow for them and their families.

He said the government was working hard for Geelong and investing money in the region.

"Geelong has been through some challenges, particularly the challenge in the early 90s of the collapse of Pyramid, but Geelong has come through each one of those bigger, better, stronger," he told reporters.

"Geelong is a diverse economy, it is a strong economy and Geelong will work through this, will work with the workers, will work with the families to create new job opportunities for those people, and we as a government continue to invest strongly in Geelong."

Dr Napthine said there would be new jobs created in Geelong, including 1000 with the expansion of Coles and more than 300 jobs with the NDIS headquarters coming to the city.

He said while workers from Alcoa may not go directly into these jobs, expanding the number of jobs in the region would create opportunities and give people choices.

Dr Napthine said he has been given an assurance by Alcoa that its Portland plant had a strong and secure future.

"It is a more modern plant, it is up to the top end of efficiencies of the Alcoa plants right across the world," he said.