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Netherlands-based aluminum producer Vimetco NV (VICO.LN) said Tuesday its primary aluminum output was 691,000 metric tons in 2008, a 22% rise from 2007 levels despite widespread cuts at its operations due to the global economic crisis.
The company said it expects the aluminum market to see sizable inventory surpluses throughout 2009, with prices continuing to be depressed for much of the year.
"Priorities are to adjust production levels and the product mix to meet demand levels in a timely manner; cost-cutting measures will be increased where required and the company will continue to source raw materials cost-effectively; and cash levels will be maintained to service debt repayments and interest," said Vimetco's acting Chief Executive Frank Muller.
Vimetco has cut over 40%, or 395,000 metric tons, of its global aluminum production capacity due to weak macroeconomic prices and poor demand. The bulk of the cuts are in China, where Vimetco expects to produce about 330,000 tons out of 660,000 tons capacity. The other cuts, announced in December, are in Romania, and amount to a reduction of 65,000 tons from 270,000 tons a year capacity there.
The company previously said it plans to produce some 610,000 tons in 2009, around 66% of its total annual production capacity of 930,000 tons.
Aluminum, used in the automotive and aerospace sectors, has seen prices more than halve over the last year. The market is currently down some 58% at $1,428/ton since peaking at $3,380/ton in July.
Earlier Tuesday Vimetco reported a net loss for 2008 of $144 million after a $215 million impairment charge for its China operations.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com
(END) Dow Jones Newswires
04-28-09 0253ET
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