Shanghai Metals Market
Alcoa Continues to Look for More Capacity Cuts-CEO
Edited by : AL CIRCLE
2 min read
Alcoa Inc. continues to look for high-cost smelting and refining capacity for potential capacity cuts, a goal that chief executive Klaus Kleinfeld called a "strong commitment."
Speaking to analysts on Tuesday's conference call after the aluminum giant released its first-quarter results, Chairman and Chief Executive Klaus Kleinfeld said: "We continue to look at our portfolio and we continue to monitor the outside world. And by the way, the 530,000 tonnes that we've taken offline may not be the end."
In early January, Alcoa announced it would slash its global smelting capacity by 12 percent, becoming the first producer to take direct action to cut costs amid a steep drop in metal prices.
On Tuesday, Kleinfeld named as possible facilities for capacity cuts Alcoa's Point Henry smelter in Australia, which he called a high-cost aluminum producer, and its Brazilian smelters with high power costs.
After discussions with the Brazilian government, Alcoa recently extended for 60 days a timeline that was originally set for March 31 to come up with a plan to reduce costs.
Kleinfeld said Alcoa was also reviewing its alumina refining portfolio for potential curtailments.
"That is a very strong commitment," the executive added.
Last week, Alcoa said it plans to cut alumina production in the Atlantic region by 4 percent, becoming the first producer to take measures aimed at reducing oversupply that has lowered prices to around $300 per tonne.
Speaking to analysts on Tuesday's conference call after the aluminum giant released its first-quarter results, Chairman and Chief Executive Klaus Kleinfeld said: "We continue to look at our portfolio and we continue to monitor the outside world. And by the way, the 530,000 tonnes that we've taken offline may not be the end."
In early January, Alcoa announced it would slash its global smelting capacity by 12 percent, becoming the first producer to take direct action to cut costs amid a steep drop in metal prices.
On Tuesday, Kleinfeld named as possible facilities for capacity cuts Alcoa's Point Henry smelter in Australia, which he called a high-cost aluminum producer, and its Brazilian smelters with high power costs.
After discussions with the Brazilian government, Alcoa recently extended for 60 days a timeline that was originally set for March 31 to come up with a plan to reduce costs.
Kleinfeld said Alcoa was also reviewing its alumina refining portfolio for potential curtailments.
"That is a very strong commitment," the executive added.
Last week, Alcoa said it plans to cut alumina production in the Atlantic region by 4 percent, becoming the first producer to take measures aimed at reducing oversupply that has lowered prices to around $300 per tonne.
Previous article
Tajikistan Aluminum Output Rises 8% In January-March
Next articleRussia January-February Aluminum Exports +2.6% On Year
Grow with
AL Circle
