Alcoa to close plants and trim work force

The 120-year-old company, which announced several cost-cutting moves last fall, said it now planned to reduce output by 18 percent this year. It also plans to cut its head count by 13,500 employees, or 13 percent, and expects to eliminate another 1,700 contractor positions.

Like many other material producers, Alcoa has struggled to cope with the steep decline in demand for fabricated goods during this economic malaise.

Aluminum prices, which rose sharply last summer, have since collapsed as aluminum consumption in crucial areas like automotive and consumer sectors has dropped sharply.

Calling the moves "aggressive, but prudent," Klaus Kleinfeld, the president and chief executive of Alcoa, said the moves were necessary for the firm to try to conserve cash and reduce costs.