Phelps Dodge to Cut Production, 1,650 Jobs

Phelps Dodge Corp., the No. 4 copper company, will trim production and fire 12% of its workers in the latest effort by a big producer to deal with a worldwide glut. The move will affect 1,650 employees and cut the company’s annual copper output by about 150 million pounds, or 8%. Phelps Dodge will curtail processing operations in New Mexico, Arizona and Texas, and close manufacturing plants in New Jersey, Kentucky, South America and the Philippines. Copper producers are struggling with prices that have fallen by a third in the last 18 months to 12-year lows, and Phelps Dodge said it could be facing “an extended downturn” in prices. The Phoenix-based company also said it is experiencing weak demand for the copper wire it makes for the aerospace and electronics industries. Phelps Dodge shares rose $2.94 to close at $61.94 on the NYSE.