Emirates Global Aluminium, formed two years ago by merging smelters owned by Abu Dhabi and Dubai, cut 250 jobs as part of a restructuring amid a global oversupply of the metal used in cars and beverage cans.
The reduction equals 4 percent of the workforce, EGA said in an e-mailed statement on Thursday. EGA was the seventh-largest aluminum producer in 2014, according to London-based metals reseacher CRU. EGA estimates its capacity as the fifth largest, with output at 2.4 million tons a year.
China, producer of about half the world’s primary aluminum, is boosting exports while smelters elsewhere struggle to cut enough supply to buoy prices. Aluminum has dropped 6.5 percent this year on the London Metal Exchange amid an oversupply estimated by Alcoa Inc., the biggest U.S. producer, at 326,000 metric tons.
EGA has $5.2 billion of major projects in the works, with a $3 billion bauxite plant and alumina refinery being built at its Abu Dhabi location. The plant is expected to open in 2017, employing 600 people, EGA said.