Alcoa smelter saved by $230m bailout

ALCOA ALUMINIUM SMELTER PORTLAND

- Employs more than 500 people at the site.

- Indirectly employs almost a quarter of Portland's population.

- At full capacity produces 385,000 metric tonnes of aluminium per year.

- Injects about $386 million a year into the Victorian economy.

WHY IS ALCOA STRUGGLING?

- Power outage on December 1 damaged equipment and left it operating at just 30 per cent capacity.

- The smelter's current cheap electricity supply deal was in jeopardy following the announcement of the closure of the Hazelwood power station.

THE RESCUE PLAN:

- Victoria to kick in $50 million per year, the federal government $30 million in total, over four years.

- Energy provider AGL announced a four year deal to supply electricity.

- The company must continue operations to 2021 or it will have to pay back the federal government.

WHAT'S BEEN SAID ABOUT THE DEAL

"That is our commitment - to ensure that you can get back on your feet and get going again, creating great export dollars, defending 700 jobs here, and over 2000 in the region." - Prime Minister Malcolm Turnbull.

"We promised Portland workers we would leave no stone unturned in our efforts to keep the smelter open -- and we have delivered certainty to thousands of local workers and their families." - Victorian Premier Daniel Andrews

"AGL is very pleased, as one of Victoria's electricity suppliers, it can play a part in helping to secure the future of the Portland smelter and the community that it supports." - AGL

"Today's government and energy agreements will help make the Portland smelter more resilient against market volatility, maintain hundreds of jobs and provide a bridge to a potential long-term energy solution." - Alcoa chief executive Roy Harvey

"We would've liked a larger contribution from the federal government, but it has worked hand in hand with us and this is a good outcome for the people of Victoria." - Victorian Treasurer Tim Pallas

"This gives them (the smelter families) breathing space and they can get on with the planning of their lives." - Port of Portland CEO Jim Cooper

"This is a whopping great big paycheck for a foreign multi-national company." - Federal Greens leader Richard Di Natale