Global specialty products supplier AMG Aluminum is curtailing its annual aluminum alloys capacity by 5,000 mt, or around 10% of its global demand, due to current market conditions, the company said Tuesday.
AMG said in a statement its decision to reduce output was driven by systemic overcapacity and low market prices.
"This is part of AMG Aluminum's continuing efforts to lower its cost structure, improve operations, increase return on capital employed (ROCE) and create long-term shareholder value," it said.
The company expects restructuring charges associated with the capacity reduction will not be significant.
Company officials did not respond to requests for additional comment.
AMG Aluminum provides aluminum master alloys and grain refiners. The company employs more than 300 people and has manufacturing plants in Brazil, China, the UK and the US.
