Kleinfeld blamed low metal prices and high production costs and said that, while China was taking steps to curtail aluminium production, it wasn’t easy to decommission ‘large, complex facilities’.
Alcoa blames low aluminium prices on its own curtailment exercise, having announced recently that it intends to cut 164kt of capacity in the USA and Brazil.
The cuts, which will be completed by the end of September, involve the closure of one pot line at the company’s Massena East plant in the USA.
Next week, Alcoa will be dropped from the Dow Jones Industrial Average because of its low stock price.
Speaking about the Dow Jones, Alcoa stated in a press release that ‘the composition of the Dow Jones Industrial Average has no impact on Alcoa’s ability to successfully execute our strategy’.
The American aluminium giant claims that it remains focused on delivering shareholder value and continues to grow its value-add businesses in order to capture growth opportunities in end markets like aerospace and automotive.
“At the same time we are optimising our upstream competitiveness,” said Alcoa, adding that it is focused on the things it can control. The plan is to lower its cost position in commodities and strengthen its end-markets through innovation.