Rusal could lower output if two smelters stopped for upgrades - Deripaska
SOCHI. July 3 (Interfax) - UC Rusal might reduce output if it stops capacity for upgrades, the aluminum giant's CEO, Oleg Deripaska, told reporters.
"When we talk about reducing volumes, we have two smelters where we plan extensive modernization. In other words, [any drop] would be related to stoppages. Anything else will be associated with how existing capacity is run. That is with the extent of capital repairs that we carry out," Deripaska said.
Rusal is preparing for an 8%-10% reduction in capacities, which could either be closed or suspended, or 350,000-400,000 tonnes overall, Rusal's first deputy general director, Vladislav Solovyev, has said. Realistically, 250,000-300,000 tonnes of capacity could be cut by the middle of 2013.
"We're looking at this issue [of reducing capacity] in two steps - the first - 5% and the second - also 5%.We're not talking about shutting down, but reducing capacity," he said.
Rusal has said any cuts would take place primarily at smelters that are running at a loss due to high electricity charges for the West aluminum division, which Rusal is re-profiling for the production of alloys and other value-added products.
