Following are the actions announced by Alcoa Inc to address the economic downturn:
- Primary aluminum smelting cuts to reduce output by more than 750,000 tonnes per year, or 18% of annualized output.
- Alumina production to be cut to a total of 1.5 million tonnes per year.
- Total headcount cut by more than 13,500, or 13 percent of Alcoa's worldwide workforce, by the end of 2009. An additional 1,700 contractor positions will be eliminated.
- A global salary and hiring freeze.
- Procurement action to lower costs for energy, coke, caustic soda and aluminum fluoride.
- Initiatives to secure raw materials from alternate suppliers.
- Divesting four non-core downstream businesses: Electrical and Electronic Systems; Global Foil; Cast Auto Wheels; and Transportation Products Europe.
- Cutting capital expenditures in 2009 by half to USD 1.8 billion.
- Cost reductions in global primary metals and alumina operations, affecting approximately 2,600 employee and contractor positions.
- Restructuring and downsizing of Mill Products businesses in Europe and North America resulting in reduction of 900 positions.
- Elimination of 235 positions in the US and Europe in Alcoa's global hard alloy extrusion production operations.
- Realignment of Russian operations affecting 18% of workforce.
- Planned sale of Electrical and Electronic Systems will reduce positions across North America and Europe by 6,500.
- Exiting the auto cast wheel business and consolidation of the Beloit, Wisconsin facility employing 265 by June 1, 2009.
- Alignment of Power and Propulsion business has resulted in the layoff of 1,100 people.
- Elimination of 260 corporate staff and contractor positions.
Source Steelguru
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