Alcoa cuts capacity by the end of March next year

Alcoa plans to idle its Auburn plant in Indiana next year and will start cutting capacity by the end of March 2013. This extrusion plant is part of the Alcoa Tire & Transportation Products business unit and is engaged in the production of automotive parts and extrusions. The reason why the company made this decision was due to the weakness of aluminum prices and high energy costs. These two factors have also brought greater pressure on manufacturers in recent years.

The perspective of the UK’s commodity research institutions: The North American transportation market is still a major growth market that developing countries rely on for their aluminum business. However, if you want to remain competitive and ultimately drive growth, you must implement consolidation and cut costs.