Norsk Hydro plans to cut production at a struggling plant in Australia and is monitoring other high cost plants to see what else it can do to weather economic uncertainty and low prices.

The Norwegian aluminium producer is considering cutting output at its 180,000 tonnes per year Kurri Kurri plant in Australia due to a weak economic environment, low metal prices, uncertain market outlook and a strong local dollar.

Mr Joergen Arentz CFO told Reuters that "Kurri Kurri is the 'number one' struggling plant, and then we will come back with whatever else might be necessary.”

"As of now, we see it as a curtailment. But obviously we have challenging market conditions."

With the overhang of high inventories and a 22% drop in prices since May last year, many aluminium producers are losing money, and some analysts say long lasting production cuts will be required in order to rebalance the market.

(Sourced from Reuters)