Belgium's Nyrstar, the world's biggest producer of zinc, said its zinc production dropped by 30 percent in the first quarter of 2009 from the final quarter of 2008 and that it planned further cost saving measures.
Nyrstar, which left the Belgian blue-chip index .BFX in March, said in a statement on Wednesday it was planning to transform its cost structure across the entire company.
This would result in more than 50 million euros ($65.08 million) in sustainable cost savings per year from 2010, it said.
Zinc output dropped to 187,200 tonnes in January-March from 255,300 in the previous quarter. Nyrstar's lead output fell 18 percent to 50,000 tonnes from the last quarter of 2008.
The group said in February it would cut zinc production by 190,000 tonnes in the first half of 2009, about 9 percent of its output in 2008, following a 35,000-tonne reduction in the fourth quarter of last year.
The severe downturn in the global economy continued into the first quarter of 2009, leading to significantly reduced demand for zinc and other commodities, the group said.
But it said production cuts helped to stabilise stock levels and zinc prices throughout the quarter.
"With our strong cash position and no debt, we are well placed to survive the downturn and position the company for growth going forward," Chief Executive Roland Junck said in a statement.
Source: Reuters
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