Hydro to cut aluminium output in Germany-report

HAMBURG, Feb 3 (Reuters) - Hydro Aluminium, the German unit of Norwegian group Norsk Hydro, is to further cut aluminium output at its plant at Neuss in central Germany as plans to rescue the plant have reached a deadlock, a German newspaper said on Tuesday. Attempts to negotiate lower electricity prices for the plant with involvement of German authorities have ended without success, financial newspaper Handelsblatt said in an advance release of a report to be published on Wednesday. Hydro Aluminium's German board will meet on Wednesday to discuss further production cuts at Neuss, it said. On Jan. 27, Norsk Hydro had said the Neuss plant faced closure because of high German electricity costs, coupled with falling metal demand. The plant produces about 200,000 tonnes of primary aluminium annually and Hydro said on Jan. 16 it would cut production by 30,000 tonnes by end-January because of falling demand. Handelsblatt said a meeting between Hydro and its German electricity supplier RWE, involving the state government of North Rhine-Westphalia, ended without success and no new power supply deal was reached. Further production cuts are proposed as the Neuss plant is making losses of 300,000 euros a day, the report said. "If we cannot reach agreement with the political level and RWE, then we will have to close for good," the newspaper quoted Hydro's German chief Irmtraud Pawlik as saying.