Glencore International plans plant takeover

FTSE 100 mining giant Glencore, is refusing to comment on reports that Italy's industry ministry has confirmed Glencore's intention to evaluate the possible industrial and market prospects of an Alcoa Inc. plant in the country.

According to Reuters, Italy's industry ministry confirmed the company's intentions, saying the country is seeking new investors to fund an aluminium smelter in Sardinia which is currently heading for closure. If the smelter is taken over, it would limit the damage to the island's economy and prevent job cuts.

According to the news agency, Italian government officials and Glencore executives met earlier this month to discuss the prospect of a takeover.

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The planned closure is part of a wider previously announced move by the aluminium giant to reduce its global output capacity by 12% in a bid to cut costs.

Coincidentally, Goldman Sachs has today published a report in which it states that optimism on the outlook for aluminium prices is turning increasingly positive. This thanks to better prospects for demand from several key US industrial sectors, such as aerospace, automobiles and construction.

The firm's share price fell 2.24% to 426.1p by 14:01.

NR