"After consulting with the workforce and the unions, we have come to the conclusion to close the remaining two production lines at Kurri Kurri. We will shortly start shutting down pots, and will do this in a safe and proper manner," said Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.

The decision is a response to the weak macro-economic environment, with low metal prices, uncertain market outlook and overcapacity in the aluminium industry, in combination with a strong Australian dollar.

One potline was curtailed in February. The process to close the remaining two potlines will start shortly and is expected to take up to three months.

More than 300 people will be made redundant as a consequence of the decision to close the plant.