Author: Paul Ploumis
05 Nov 2014 Last updated at 07:13:34 GMT
KINGSTON (Scrap Monster): The decision of the executives of Alco, on selling the company's stake at Jamalco bauxite and alumina refining joint has been finalized. The 55 percent of the stake in the joint venture is owned by Alcoa, and the remaining 45 percent is owned by the Jamaican government, in the behalf of the government owned, Clarendon Alumina Production LTD.

Alcoa is planning to sell 55 percent of the shares at the joint venture to Noble Group, a honking based industrial group, for 140 million dollars. The company stated in a report that, the selling of its share at the joint venture, is a great step for Alcoa, but the company has to do so, as to initiate and contribute to the cost reducing efforts.

Even as the demand for aluminum began to decline, the supply didn't. And as a result the market for aluminum became over supplied by 235,500 tonnes, in the year 2014. But there is still hope as the forecast shows that, even though aluminum is facing supply glut at present, things would change with the coming of the year 2015, when the supply glut would turn into a supply deficit of 4,444 tonnes of aluminum.

The company, Alcoa, has successfully managed to hike up its profits to a tremendous level of 149 million dollars from 24 million dollars, last year. Even so, the company has decided to go with the cost reduction procedures.