ARNC Arconic Corporation

Alcoa Inc. took additional steps to cut its smelting and refining capacity as it struggles with lower aluminum prices.

The company said it would reduce aluminum smelting capacity by 503,000 metric tons and alumina refining capacity by 1.2 million metric tons by the end of the first quarter of 2016.

The cutbacks will include the idling of the Intalco and Wenatchee primary aluminum smelters in Washington and the Massena West smelter in New York. Alcoa will partially curtail refining capacity at its Point Comfort, Texas, facility.

Alcoa expects fourth-quarter restructuring charges of $160 million to $180 million after tax, or 12 cents to 14 cents a share.

"In the face of continued adverse market forces, we are once again not standing still," Alcoa said.

In September, Alcoa said it would split its operations next year. One business, known as the Value-Add company, will make parts for cars and planes. The other, called the Upstream company, will produce raw aluminum and its ingredients.

Alcoa said Monday that "these difficult, but necessary measures will further strengthen our Upstream portfolio, reducing our cost position and driving greater resilience as we prepare to launch this business as a strong stand-alone company."

On Oct. 8, Alcoa reported a sharply lower third-quarter profit.

Oversupply, exacerbated by China's economic slowdown, has battered aluminum prices. In March, the company said would review its overall smelting and refining capacity for potential cutbacks, and has since announced specific plans including the curtailment of the remaining alumina refining capacity in Suriname Aluminum Co.

Write to Josh Beckerman at josh.beckerman@wsj.com

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(END) Dow Jones Newswires

November 02, 2015 19:15 ET (00:15 GMT)

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