The company’s owners issued a statement last week announcing global operations could cut 460,000 metric tons, or about 11 per cent, of its smelting capacity over the next 15 months.

The announcement follows the federal government-issued $42 million rescue package last year, with aluminium prices falling more than 33 per cent since its 2011 peak.  An Alcoa spokeswoman was unable to comment about Portland specifically, saying it was too early to speculate what the review would mean for the smelter, which employs about 540 workers.

Details of how the cuts would impact the Portland site, as well as 500 workers at Geelong, will become more clear over the next 15 months.

Alcoa’s global primary products president Chris Ayers said persistent weakness in global aluminium prices had given Alcoa reason to review options in maintaining its competitiveness. 

“Any action taken will only be done after a thorough strategic review and consultations with stakeholders,” Mr Ayers said.

Alcoa trimmed its Portland operation by 15 per cent in late 2010 and is the region’s biggest employer.

The company last year warned Portland operations would need to be managed carefully to remain viable, amid talk of curtailing its Point Henry operation near Geelong.

A spokesman for Premier Denis Napthine last week told The Age the government had worked with its federal counterpart to provide assistance packages to Alcoa and set up an industry fund to help create jobs in western Victoria.