NEW YORK, N.Y. - Alcoa (NYSE:AA) says it is closing or curtailing another 164,000 tonnes of aluminum production in the United States and Brazil, raising total cuts to more than half of the global output it put up for review in May.
The reduction announced Wednesday is on top of 105,000 tonnes to be removed with the planned closure of Alcoa's smelter in Baie-Comeau, Que., and the permanent closure of an Italian smelter.
One potline producing 40,000 tonnes of production will be permanently closed in Massena East, N.Y., while it will temporarily curtail 124,000 tonnes at its smelters in Brazil.
The American aluminum giant says the changes will be completed by the end of September.
Alcoa announced in May that was reviewing 460,000 tonnes of global smelting capacity to maintain its competitiveness in light of weak market conditions, including metal prices that have fallen to a four-year low.
To date, Alcoa has announced 269,000 tonnes of capacity closures or curtailments.
Once the latest adjustments are completed, Alcoa said 16 per cent or 646,800 tonnes of its smelting capacity will be idle.
Rio Tinto Alcan (NYSE:RIO) has also announced plans to cut its capacity, including 100,000 of annual capacity with the closure by November of its smelter in Shawinigan, Que., more than a year ahead of schedule.
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