April 5 (Reuters) - Alcoa Inc said it will slash alumina production capacity by 390,000 tonnes to offset weak demand and oversupply.
The company’s refining capacity will drop about 4 percent in the Atlantic region due to the move, the company said.
Alcoa’s total global refining capacity is 18 million tonnes per year, the company said.
Alcoa is taking these steps to avoid aggravating alumina oversupply in the Atlantic region and to enhance the efficiency of our refining system,” Chris Ayers, president of Alcoa’s global primary products division, said in a statement.
The cuts come after Alcoa cut smelting capacity by 531,000 tonnes in January.
Shares of Alcoa slipped 0.4 percent to $9.77 in premarket trading.
Alcoa’s first-quarter results are due on April 10.
Alcoa’s stock price has fallen 46 percent since April 2011. Aluminum prices have been creeping up slowly and rose in the first quarter of 2012 to $2,126 per tonne on March 31 from $2,020 per tonne on Jan. 1. But that is still almost 20 percent lower than a year ago.