Alcoa To Reduce Production at Alumar Smelter in Brazil.Business Editors PITTSBURGH--(BUSINESS WIRE)--June 28, 2001 Alcoa Alcoa U.S. company, the world's largest producer of aluminum. Established in Pittsburgh, Pa., in 1888, it adopted the name Aluminum Co. of America in 1907. Alcoa introduced aluminum foil in 1910 and found uses for aluminum in the emerging aviation and automobile industries. (NYSE NYSE See: New York Stock Exchange :AA) announced today that it is reducing aluminum production at the Alumar smelter in San Luis San Luis, city (1991 pop. 110,353), capital of San Luis prov., W central Argentina. The city is the commercial center of an area producing cattle, corn, and asparagus; the surrounding area has timber and mineral resources. San Luis is a popular resort. , Brazil, by 63,000 metric tons per year (mtpy), effective July 1, 2001. Alumar had been operating at full capacity of 370,000 mtpy. Alcoa Aluminio, Alcoa's Brazilian affiliate, receives 54% of Alumar's production, or 34,000 mtpy of the reduction; Billiton Plc. receives the remaining 46%, or 29,000 mtpy of the reduction. The action is prompted by the Brazilian government's request to reduce consumption of electricity in the northern area of Brazil. The net effect of the Alumar curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. will not be material to Alcoa's full year 2001 earnings. Alcoa owns 59% of Alcoa Aluminio S.A. Alcoa's worldwide primary aluminum capacity is 4.1 million mtpy. Alcoa currently has approximately 700,000 mtpy of idled capacity. |
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