Alcoa’s Warrick Operations in Newburgh is planning to lay off up to 145 employees of its rigid packaging division by the end of March.
The company said Tuesday that the layoffs are in response to a declining demand for its products.
The plant near Evansville is one of the largest aluminum smelting and fabricating facilities in the world and produces aluminum for beverage and food can ends and tabs.
“This is a difficult but necessary decision," said Ed Hemmersbach, rigid packaging division location manager, in a prepared statement. “While we continue to pursue additional business, it is clear that we need to take action now.”
The Warrick Operations employ about 2,100 people, 1,500 of whom are members of United Steelworkers Local 104. Parent Alcoa Inc. in New York said it will continue working with the union to review options in the contract to possibly reduce the need for layoffs. The company will try to hold down the number of layoffs by offering early-retirement packages.
Alcoa is the world’s largest producer of aluminum.