It will cut 531kt of its global capacity and permanently close its smelter in Alcoa, Tennessee, which was curtailed in 2009, along with two of the six idled potlines at its Rockdale, Texas smelter.

Together, these closures will reduce Alcoa’s global smelting capacity of 4.5Mt/y by 291kt, or about 7%.

The other cuts, which will be completed by the end of H1 2012, will reduce its smelting capacity by an extra 240kt or about 5%.

“These are difficult but necessary steps to improve Alcoa’s competitiveness, preserve and grow shareholder value and protect jobs in the rest of the Alcoa system,” said Alcoa Chairman and CEO Klaus Kleinfeld.

Aluminium prices have fallen more than 27% from their peak in 2011. In addition to the cutss, it will accelerate actions to reduce the cost of raw materials.