Alcoa

(AA) - Get Report

said today it will continue to cut back production at its Ferndale, Wash., aluminum smelter, but the company plans to restart idle capacity at its Warrick County, Ind., operation.

The aluminum producer will lower 2001 production by an additional 70,000 metric tons at the Washington smelter, in which it owns a 61% stake, but no layoffs are expected. The output reduction will lower the smelter's operating capacity to 130,000 metric tons a year. Alcoa will hire roughly 40 production workers at the Indiana plant.

Shares of Alcoa, which is based in Pittsburgh, gained $1.22, or 3.4%, to $37.15 in recent

New York Stock Exchange

trading.