The world’s largest aluminium producer, RUSAL, has announced plans to cut its production amid unstable prices and oversupply, according to an official press release.
The decision to reduce aluminium production at the company’s smelters by 300,000 tonnes by the end of 2013 was given a green light by the board of directors. The move is expected to help Rusal maintain its competitive edge on the world market at a time when prices are flat, power tariffs high and supply exceeding demand.
Analysts have been less optimistic about its ability to implement the cuts, pointing to possible civil unrest in smaller towns heavily dependent on Rusal in case workers are laid off.
Oleg Deripaska's holding has dismissed the option of downsizing, insisting that the employees affected by the decrease in output be offered alternative jobs at their current smelters, retraining programmes or positions at other plants within the group, including at new greenfield projects, reads the statement.
Author: Mikhail Vesely