The Southland Business Chamber says it is helping businesses to prepare for the potential closure of the Tiwai Smelter at the end of the year.

The aluminium smelter provides an estimated 750 direct jobs and supports 2500 jobs in the region, producing roughly 330,000 tonnes of aluminium a year.

In 2020, Rio Tinto announced it would wind down the smelter the following year. But in 2021, that was pushed back until the end of December this year after a new deal was struck.

With uncertainty about whether that date would be pushed out again, the Southland Business Chamber has been working to ensure the region's businesses were well-prepared if that happened.

Last May, the chamber secured five years of government funding for an engineering and manufacturing cluster to help the region transition and diversify its economy.

Chief executive Sheree Carey said they were preparing for the closure, but they remained hopeful the Tiwai Smelter would be a part of the region's economy and community for many years.

"Being able to secure (Ministry of Business, Innovation and Employment) funding for five years has meant we've been able to establish the Southland Engineering and Manufacturing Cluster to map and build capability in this sector to ensure they're ready to diversify into new industries and grab opportunities locally, nationally and internationally," she said.

The key focus was attracting skilled workers to the manufacturing engineering industry, she said.

She did not believe it was a choice between one or the other, saying the Tiwai Smelter and new industries including hydrogen production would co-exist.

"This project is transformational not just for Southland but nationally, as the successful pilot model can be rolled out across other regions," Carey said.

The newly established Southland Innovation Centre - which was opened by the chamber - was aimed to foster innovation and economic growth, and help businesses to collaborate.

It received backing from Murihiku Rūnaka and Rio Tinto/NZAS Community Development Fund.

Reproduced with permission