Trimet Aluminium May Decide to Return to Full Capacity in 2010

Dec. 4 (Bloomberg) -- Trimet Aluminium AG, Germany’s largest producer of the metal, will decide next year whether to return to full output after keeping production at two-thirds of capacity for the past six months. The company closed two of three pot lines at the start of 2009 at its 170,000 metric-ton-a-year plant in Essen as demand for metals contracted with the world entering its deepest recession since World War II. Trimet raised production in May on expectations demand would rebound. Customers include rolling and extrusion mills making products for the auto, construction and packaging industries. “We are running at two-thirds of capacity,” spokesman Mathias Scheben said by e-mail, responding to questions on behalf of Chief Executive Officer Heinz-Peter Schlueter. “We will decide early next year on our production output for 2010, depending on the stabilization of demand at a sufficient level.” Output at a second plant in Hamburg remains 30 percent below its capacity of 130,000 tons a year, Scheben said. Demand for the lightweight metal contracted 6.5 percent this year, spurring global production cuts of as much as 19 percent, according to Barclays Capital. Demand will grow 8.2 percent next year as manufacturing recovers, the bank forecast. Rusal Capacity Trimet’s comments echo those yesterday of United Co. Rusal, the world’s largest aluminum producer. The Russian company won’t restart idled capacity while demand is still on the mend, owner and Chief Executive Officer Oleg Deripaska told Bloomberg News. Reduced demand has added to aluminum inventories. London Metal Exchange-monitored stockpiles almost doubled this year to a record 4.6 million tons on Sept. 16. Supply will exceed demand by 1.63 million tons in 2010, up 29 percent from this year, Barclays Capital estimates. Three-month aluminum rose 0.3 percent to $2,139.75 a ton by 12:33 p.m. in London. The contract reached $2,166 yesterday, the highest price since Oct. 30 last year. To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net