Alcoa Inc. said on Friday it will review 500,000 metric tons of its smelting capacity, and 2.8 million metric tons of refining capacity, for possible divestitures or reduced activity, as the aluminum giant looks to cut costs and improve its competitive position. The potential moves could affect 14% of the company's smelting capacity and 16% of its refining capacity. The stock rose 1% in premarket trade. "Alcoa continues to take decisive action, transforming its upstream portfolio to create a lower cost, globally competitive commodity business," said Bob Wilt, president of Alcoa's global primary products group. Since 2007, Alcoa has curtailed, closed or sold 1.3 million metric tons, or 31%, of its highest-cost smelting capacity in its primary metals business. The stock has dropped 15% over the past three months through Thursday, while the S&P 500 has gained 1.2%.
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