(News Bulletin 247) – Alcoa intends to reduce the production capacity of its Portland Aluminum joint venture in Australia following the occurrence of operational difficulties at the foundry.
The site has recently been confronted with the appearance of problems of instability in the production of anodes, components necessary to convey electricity in the melting pots, explains the group in a press release.
The American aluminum producer thus plans to reduce its capacity utilization rate to around 75%, after having already reduced it to 95% previously.
Alcoa explains that it made its decision with security in mind, but says it is currently working to restore the site to full capacity.
The production of the Australian joint venture represents some 358,000 tonnes per year, of which 197,000 are intended for Alcoa, which owns 55% of the site ahead of CITIC and Marubeni Aluminum (22.5% each).
Around 11:10 a.m. (New York time), Alcoa shares fell more than 9% on Wall Street in the wake of the plunge in the basic materials sector, affected by fears of a financial crisis and global recession.
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