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Mon 11 May 2009 10:52 AM

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Dubal sees sales fall 30% in Q1 2009

Dubai's state-owned smelter has seen sales drop due to global decline in car industry, on back of crisis.

Dubal sees sales fall 30% in Q1 2009
MANUFACTURE SLOWDOWN: Aluminium producers worldwide have taken about 15 percent of global capacity offline as a result of economic slowdown.

Sales of state-owned smelter Dubai Aluminium Co (Dubal) fell 30 percent in the first quarter due to declines in the global automobile industry, its chief executive Abdulla Kalban said on Monday.

"We have seen a drop of 30 percent in our sales at Dubal during the first quarter of the year, which is due to international decline from the automotive industry," Kalban told an industry conference in Dubai.

Aluminium producers worldwide have taken about 15 percent of global capacity offline as global demand has slumped with the slowing economy.

Kalban told the conference there would be no production cuts at Dubal.

The smelter said in March it had no plans to cut production and would keep output steady in 2009 at 950,000 tonnes.

The automobile industry around the world has been brought to its knees as consumer demand is badly hit by the global credit crisis .

US automaker Chrysler has filed for bankruptcy, while General Motors Corp has said it would do the same if a planned bond exchange offer fails.

US auto sales fell 34.4 percent in April from a year earlier, according to manufacturers.  (Reuters)

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