Madras Aluminium Co. cuts production by 60 percentNovember 20th, 2008 - 7:41 pm ICT by IANS
Chennai, Nov 20 (IANS) Hit by demand slump and high input costs, Madras Aluminium Co. Ltd (Malco), one of the leading integrated aluminium manufacturers in the country, has decided to cut down production by 60 percent.The Rs.4.74-billion Malco has bauxite mines with 1.7-million tonne reserves in Salem and Namakkal districts in Tamil Nadu. The company also owns a 120,000-tonne per annum aluminium refinery, a 40,000-tonne smelter and a 75-MW captive power plant at Mettur in the state.
The company attributed its decision to falling prices at the London Metal Exchange and increasing input costs.
Price of aluminium delivery has now come down to three-year low to touch $1,852 a tonne due to falling demand, the company said.
With Tamil Nadu reeling under severe power shortage and the government allowing captive power producers to sell it to third parties, Malco has started selling surplus power.