BUENOS AIRES, Nov 08, 2011 (Dow Jones) -- Aluar Aluminio Argentina SA (ALUA.BA) said Monday that its production capacity has been reduced by 20% to 25% after a landslide damaged electric equipment that feeds power to its aluminum smelter.

In a statement to the Buenos Aires Stock Exchange, Aluar said it's working to restore power to its smelter at the port city of Puerto Madryn in Chubut Province.

The smelter draws electricity from the Futaleufu hydroelectric plant in the Andes mountains 500 kilometers to the west of Puerto Madryn, as well as thermoelectric sources.

Aluar produced nearly 432,000 tons of aluminum and had sales of 4.58 billion pesos ($1.08 billion) during its fiscal year 2011.

Aluar's shares closed 5.6% lower at ARS3.70.