Alcoa Cuts Aluminum Production at Texas Plant

Packaging market contributes to reduced demand

-- Packaging Digest, 10/24/2008 1:52:00 PM

Alcoa announced it will reduce production at its Point Comfort, Texas alumina refinery by approximately 25 percent, or a reduction of approximately 550,000 metric tons per year, by the end of November.

“Aluminum prices have fallen dramatically over the past few months,” said Bernt Reitan, Alcoa Executive Vice President and President – Global Primary Products. “We are reviewing each and every potline across our entire global smelting system and we are doing the same with each digester within our worldwide refining system. We will continue to take steps to match production with demand in the marketplace, focusing on our highest cost operations.”

The curtailment of two digesters at the Point Comfort facility follows Alcoa’s announcement last month to curtail production at its Rockdale, Texas aluminum smelter as a result of uncompetitive power supply to that smelter and overall market conditions.

As a result of the curtailment at Point Comfort, the workforce will be adjusted accordingly, with the majority of the impact on contractors at the refinery. Costs for the curtailment will not be material.

The Point Comfort refinery is part of Alcoa World Alumina and Chemicals (AWAC), a global alliance between Alcoa and Alumina Ltd, with Alcoa holding 60 percent.

Source: Alcoa

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