Aluminum giant RusAl posts 7.2% decline in Q1 aluminum output

MOSCOW, April 21 (RIA Novosti) - Russian aluminum giant RusAl said on Tuesday its primary aluminum output had decreased 7.2% year-on-year in January-March to 1 million metric tons.

United Company RusAl, established in March 2007 through a merger of the Russian aluminum giants RusAl and SUAL and Swiss Glencore's alumina assets, said bauxite production fell 34.2% in the reporting period to 3 million metric tons, while alumina output declined 25.3% to 2.1 million metric tons.

"As part of its Cost Efficiency Leader program, RusAl has reduced production across its most economically inefficient and environmentally unsound facilities. By the end of 2009, the total reduction of aluminum will be 0.5 mln tons, which is approximately 11% of 2008 volume. The alumina output will be cut by 3.9 mln tons, approximately 34% of the total output," the company said.

RusAl said that total savings from cost-cutting measures amounted to $554 million in the first quarter, with the company expected to save $1.1 billion in 2009, excluding the investment program.