For now, one potline at the plant will be shut down by Saturday and about 120 employees will be shifted to other operations, Century Aluminum said.

Production is expected to be reduced by about 3,540 tons per month as a result.

If aluminum prices don't stabilise and monthly costs can't be cut, the plant will cease operations beginning February 15, Century said.

"These are economic decisions based on the global economic crisis and the unprecedented decline in aluminum prices," plant manager Jim Chapman said in a statement.

Experiencing significant losses

"We are experiencing significant losses at the current aluminum price."

Century and other aluminum makers such as Alcoa Inc have been dented by the economic slowdown, which has dropped prices from a high of about US$1.50 a pound in June to less than 68 cents Tuesday.

Owners of plants

Both Century and Alcoa are owners of plants in Jamaica. Century co-owns St Ann Bauxite Company with Miranda Minerals, while Alcoa is partner with Jamaica's Clarendon Alumina Production in Jamalco.

Curtailing the potline at the US plant will cut cash losses immediately and give the company 60 days to work with suppliers, customers, employees and government on ways to improve the plant's economics and maintain operations, Chapman said.

The plant employs between 500 and 600 hourly employees, according to the United Steelworkers union.

Workers were notified of the potential shutdown Wednesday in accordance with a federal law that requires employers to provide notice 60 days in advance of plant closings and mass layoffs.

AP