The Aughinish Alumina refinery in Limerick has been sold to Swiss company Glencore. Both parties have declined to disclose the price, but Alcan Aluminium, which owns Aughinish has taken an after tax loss of $120 million (#101.58 million) on the sale.

A spokesman for Aughinish said last night that the 450 jobs at the plant would be unaffected. It is understood staff were informed of the sale at meetings yesterday.

Aughinish produces aluminium from bauxite and the plant cost £620 million to build when it was established in 1983. Talks with Glencore, a privately-owned global natural resources company, began last year.

In a statement, Glencore said it was impressed with the Aughinish operations and its achievements over the past number of years. "We see Aughinish as a good investment and complementary to our alumina trading strategy.

"Our investment demonstrates our confidence in the long-term future of this world-class plant and its workers," it added.

Yesterday, Mr Ian Perkins, a member of the senior management of the new owners, Glencore, told workers: "You need have no anxiety about the future."

The Aughinish plant will be managed and operated by an Irish team, headed by Mr Michael Collins. Currently financial controller, he becomes managing director.

Former Aughinish managing director and now Alcan vice-president, Ms Cynthia Carroll, who was in Ireland for the announcement, said the sale met Alcan's "global strategy of concentrating on its core activities and exploiting its advantages to become the lowest cost producer of aluminium metal".

She said Alcan would reduce its activities in trading alumina. "Much of Aughinish's production was sold to third parties," she said. "Alcan, however, remains a customer of the Aughinish refinery."

An Aughinish spokesman said the plant, which was originally built to produce 800,000 tonnes of alumina per year, now produces 1.4 million tonnes and is extremely efficient. He acknowledged that it cost Aughinish more to produce alumina - used in cement and aluminium products - than many other producers. However, he said the company was very efficient and controlled its costs well.

Alcan president and chief executive officer, Mr Jacques Bougie said that the divestment of Aughinish was part of Alcan's stated objective to be a low-cost supplier of bauxite and alumina to its smelters. He made his comments as Canadian-based Alcan reported net income of $89 million for the fourth quarter of 1998, compared to $146 million for the same period a year ago. Net income for the full year was $399 million, compared to $485 million for 1997. It said special gains on two sales were largely offset by the Aughinish write-down.

Glencore said Aughinish would complement its investment in Italy where it has a 44 per cent interest in the Eurallumina alumina refinery in Sardinia. Glencore employs 2,000 people and had sales of $40 billion in 1997. It says its asset base is $7 billion.

The takeover by Glencore was warmly welcomed locally. Limerick County Council chairman, Senator Mary Jackman said Aughinish had had a profound effect on the regional economy "which benefits to the extent of £55 million annually by way of purchases and sub-contracting".

Mr Ted Russell, Limerick Chamber of Commerce president, said it was encouraging that staff had received assurances on jobs.