Germany’s Hydro Aluminium said it is considering production cuts, as facing from the 25 percent decline in demand from auto industry.

The company said the production cut will affect the mill in mid-Germany with 1.5 million tons output, which is one of the world's largest aluminum rolled producing plants.

The timeframe for scaling back production has not yet been determined. If demand remains in the doldrums in Germany, the company will consider possible layoffs, but will try to avoid that option.

The company said that the demand from packing, consumer goods and building sectors was stable.

Norsk Hydro has a plant in Neuss with an annual capacity of 230,000 tons of primary aluminum, a smelter and rolling plant which has an annual output of 190,000 tons, and a rolled products complex plant located in Grevenbroich with an annual output of 440,000 tons.

European car sales decline has been damaged vehicles and the auto parts supply industry, and at the same time, it will affect the demand for aluminum.