Noranda initiates cost-cutting strategy

Oct 30, 2013 | 01:40 PM | Michael Cowden

Tags  aluminum, Noranda Aluminum Holding, Layle K.

CHICAGO — Noranda Aluminum Holding Corp. is laying off workers at a North Carolina rolling mill and scaling back a planned expansion at its New Madrid, Mo., smelter as it looks to cut costs and conserve cash.

The moves come as the Franklin, Tenn.-based aluminum producer grapples with low London Metal Exchange aluminum prices, import competition and higher electricity costs, company executives said during an earnings conference call Oct. 30.

"We’re not just sitting around waiting for the LME to get better," Noranda president and chief executive officer Layle K. "Kip" Smith said.

Noranda has "initiated a work force reduction" at is Salisbury, N.C., rolling mill in response to import competition on certain light-gauge foil products also made at the company’s Newport, Ark., rolling mill, Smith said. The move, which should save the company about $4 million to $6 million per year, is necessary to "match production with demand."....

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