RusAl Plans to Reduce Output, Work Force

United Company RusAl, the world's largest aluminum producer, plans to reduce production by as much as 4 percent at its Russian smelters and cut 5 percent of jobs worldwide.

The company may reduce output at six plants by about 180,000 tons a year, CEO Alexander Bulygin said Monday, Interfax reported.

Producers worldwide have announced plans to cut output by 11 percent after stockpiles rose to a 13-year high, Bulygin said. Producers will reduce output by an additional 5 percent to 10 percent in the next seven months, he said. Global aluminum supply will shrink to 36 million tons next year, with prices stabilizing at about $2,000 a ton by the end of 2009, he said.

RusAl said it plans to halve alumina output at its Italian unit Eurallumina and reduce production by 35 percent at a refinery in Jamaica.

The company may also cut staff by 5 percent as it reduces production, Bulygin said. Most of the cuts will be at RusAl's overseas units. The company will "optimize" spending and delay its Taishet smelter by a year, Bulygin said.

Bulygin said RusAl expects its share of the global aluminum market to increase to 15 percent from 12 percent now.