It said it was cutting production by a further 50kt/y and is now operating at 360kt/y out of a possible 660kt/y - about 60% of its capacity.

It has also delayed on planned new projects in China but said its 300MW power plant and new cast house in China’s Henan Province, for primary products, wire rod, billets and slabs, was on track to be fully operational by Q2 2009.

In addition, its Romanian subsidiary, Alro, reported a profit of $97M for 2008 but said it had to make several cuts during the year to cut costs. This included laying-off 936 workers during 2008 and reduced production levels. It added more cuts are likely throughout 2009.