RAVENSWOOD, W.Va. (AP) -- Production at Century Aluminum of West Virginia's Ravenswood plant is being cut and may halt altogether because of slumping prices, the company's Monterey, Calif.-based corporate parent said Wednesday.
For now, one potline at the plant will be shut down by Saturday and about 120 employees will be shifted to other operations, Century Aluminum said. Production is expected to be reduced about 3,540 tons per month as a result.
If aluminum prices don't stabilize and monthly costs can't be cut, the plant will cease operations beginning Feb. 15, Century said.
"These are economic decisions based on the global economic crisis and the unprecedented decline in aluminum prices," plant manager Jim Chapman said in a news release. "We are experiencing significant losses at the current aluminum price."
Gov. Joe Manchin has been speaking with Century and customers, but it appears the state can offer little help, spokesman Matt Turner said.
"Some of their key customers are automobile and aerospace," Turner said. "The outlook for aluminum right now, it's just not good."
Century and other aluminum makers such as Alcoa Inc. have been dented by the economic slowdown, which has dropped prices from a high of about $1.50 a pound in June to less than 68 cents Tuesday.
Curtailing the potline will cut cash losses immediately and give the company 60 days to work with suppliers, customers, employees and government on ways to improve the plant's economics and maintain operations, Chapman said.
The plant currently employs between 500 and 600 hourly employees, according to the United Steelworkers union. Workers were notified of the potential shutdown Wednesday in accordance with a federal law that requires employers to provide notice 60 days in advance of plant closings and mass layoffs.
A union representative had no immediate comment.
Shares of Century were unchanged at $9.54 Wednesday morning. The company's shares have ranged between $80.52 and $4.35 over the past 52 weeks.
