BUSINESS

Alcoa to permanently close idled aluminum smelter in Tennessee, trim a Texas operation

01/05/2012 04:59 EST | Updated 03/06/2012 05:12 EST
NEW YORK, N.Y. - Alcoa plans to close an aluminum smelter in Tennessee and some operations at a Texas facility to cut costs in the face of weak prices.

The moves will cut Alcoa's global smelting capacity by about 12 per cent.

The company said Thursday it would permanently close the smelter in Alcoa, Tenn., which was curtailed in 2009, and it will shut down two of six idle lines at a smelter in Rockdale, Texas.

Aluminum prices have fallen by about one-fourth since April because of factors such as weak demand in construction, slower growth in China and uncertainty about the direction of Europe's economy.