UPDATE 2-UAE's Dubal Q2 sales seen down 20 pct - CEO

* Q1 sales fall 30 pct on slump in auto industry demand * Q2 sales under pressure from high inventories * Dubal producing at full capacity, sees no cuts * Plans for new aluminium plant uncertain DUBAI, May 11 (Reuters) - Dubai Aluminium Co's (Dubal) sales fell 30 percent in the first quarter and would likely fall 20 percent in the second, its chief executive said, while the state-owned smelter's plans for a new plant were uncertain. "We have seen a drop of 30 percent in our sales at Dubal during the first quarter of the year, which is due to an international decline from the automotive industry," Chief Executive Abdulla Kalban said on Monday at an industry conference in Dubai. High global inventories were putting pressure on sales in the second quarter, Kalban said. "Worldwide inventories have increased to 4 million tonnes and that is putting pressure on our sales," he said. Car manufacturers around the world have been brought to their knees as consumer demand slumps in the global economic crisis. Last week, Japan's Toyota Motor Corp <7203.T>, the world's biggest automaker, forecast a $8.6 billion annual loss and said it would sell about 1 million fewer vehicles this year. U.S. auto sales fell 34 percent in April from a year earlier, according to manufacturers. Speaking at the same conference, Dubal's vice-president of marketing and sales, Walid al-Attar, said plans to build an aluminium plant at King Abdullah Economic City in Saudi Arabia were "uncertain" because of the economic climate. Last month, Dubal met the Saudi Investment Authority and Saudi mining company Maaden <1211.SE> to discuss plans to build the plant. King Abdullah Economic City, which is being developed by Dubai's Emaar Properties' Saudi affiliate Emaar Economic City <4220.SE> (EEC), is central to Saudi Arabia's plans to diversify the oil-based economy and create much-needed jobs for a rapidly growing and predominantly young population. NO PRODUCTION CUTS, SAUDI SMELTER "UNCERTAIN" Kalban said Dubal was producing at full capacity of 960,000 tonnes a year and would not cut production. Aluminium producers worldwide have taken about 15 percent of global capacity offline as demand slumps. Many are operating below break-even levels and industry analysts say further prodcution cuts are needed to boost prices. Dubal said in March it would keep output steady in 2009 at 950,000 tonnes. Three-month aluminium on the London Metal Exchange settled at $1,540 a tonne on Friday, down from an all-time high of around $3,100 a tonne last July.