UC Rusal recently announced a realignment of production strategies and has now announced interim volume reduction results at its least-efficient smelters.
Aluminum production has been delayed at the Volgograd, Urals and Volkhov aluminum smelters, as well as at the first phase of Novokuznetsk smelter and at the Alscon smelter in Nigeria. In addition, aluminum production has been mothballed at Bogoslovsk smelter potrooms 2, 3, 4 and 5 and at Nadvoitsy smelter potrooms 1 and 2; accordingly, the 2013 output decrease will total 247,009 tons, leading to a 516,062-ton output decrease in 2014.
Measures by the company, including amperage reduction, has led to production decreases at the Sayanogorsk, Irkutsk, Novokuznetsk and Khakass aluminum smelters. The 2013 reduction at these smelters, meanwhile, will total 77,724 tons with an expected cumulative effect of 131,442 tons next year.
Consequently, Rusal has already cut aluminum production by 324,733 tons, or 8% of 2012 volume, impacting 647,504 tons — or 15% of 2012 production — in 2014. The rollbacks have enabled savings of $40 per ton in aluminum cash costs, according to company officials.
First Deputy CEO Vladislav Soloviev noted guidance well within market demands. “Rusal continues to react to market conditions and may consider further actions to improve its cost position,” he said in a statement.