Eramet looks set to further slash its manganese ore production in response to the global downturn in demand. There will also be a slight fall in nickel production in 2009.
The company, which announced last month that production for the fourth quarter of 2008 would be 23% less than for Q4 of 2007, said on Wednesday that Eramet Manganese's ore production for Q1 of 2009 will be 40% of capacity - a reduction of 600,000 tonnes for the quarter - while alloys will be running at just 35% of capacity - a reduction of 150,000 tonnes for the quarter.
The company produced 3.2 million tonnes of manganese ore in 2008, a decrease of 3% over the previous year, while manganese alloy production totalled 708,000 tons for the year, a 7% decrease compared with output in 2007.
Output for the rest of the year will be adjusted according to demand, though the company is confident it will be able to address any upturn.
Eramet Nickel announced last month that its production in 2008 would be limited to 51,000 tonnes; its estimate for 2009 production is estimated to be 50,000 tonnes.
Eramet Alloys reduced production in 2008 by shutting down facilities at Söderfors in Sweden and Commentry in France for three weeks from mid-December.
Despite the global economic downturn like-for-like operating income for 2008 should be comparable to the EUR1.2 billion made in 2007. The group's net cash stood at over EUR1 billion at the end of 2008.
Annual results will be posted on 19 February.
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