Alcoa has announced it will review its alumina refining system, including its facilities in Western Australia, as the global aluminium giant seeks to cut costs in a weak industrial metals market.
Alcoa said today it would review 460,000 tonnes of smelting capacity over the next 15 months, around 11 per cent of its current capacity.
The company said it would also consider alternative actions, including the review of its refining system.
Alcoa has three alumina refineries in Western Australia; at Kwinana, Pinjarra and Wagerup.
At the WA facilities, Alcoa produces 45 per cent of Australia’s alumina, while the production services 11 per cent of total international demand.
Aluminium prices have plunged by more than one-third since their 2011, forcing Alcoa to look to cut costs.
Alcoa said decisions on smelting or refining cutbacks would be announced as the reviews are completed.
“Because of persistent weakness in global aluminium prices, we need to review every option to maintain Alcoa’s competitiveness,” Alcoa global primary products president Chris Ayers said.
“Any action will only be done after a thorough strategic review and consultations with stakeholders.”
At close of trade today, Alcoa’s Australian-listed shares were steady at $7.90.
