Alcoa Cutting Production

Alcoa Inc. announced it is taking extended downtime at a number of its facilities. The decision is being prompted by slow demand for the finished aluminum.

The company will immediately take downtime at its Badin, N.C. facility. The plant has been operating at 90,000 metric tons per year since September, 2000. All production at this facility will be idled by Aug. 16. Ingot casting operations, which will continue for several more months, will cease by the end of this year.

Alcoa also announced that two facilities – in Troutdale, Ore., and Rockdale, Tex., which have been idled for the past several years, will be closed permanently. The Troutdale plant, closed since June 2000, had a total capacity of 121,000 metric tons per year. The Rockdale facility, which has a total capacity of 320,000 metric tons per year, has taken off line 76,000 metric tons of capacity for the past several years.

The company announced that assets of both facilities will be dismantled.

"Our growth strategy in primary metals is based upon both moving down the cost curve while maintaining return on capital targets. As we explore projects around the world we must take a hard look at assets in the United States, where escalating energy and labor costs have made many smelters less globally competitive," said Al Renken, president of Alcoa Primary Metals.

After adjusting to the announced shutdown of its facilities, Alcoa will have 438,000 mtpy of aluminum production idled on a base capacity of 3,948,000 mtpy.