Alcoa, Inc. is cutting its stake in a planned aluminium complex in Saudi Arabia its partner announced today.

Maadeen, the main stakeholder in the project, said Alcoa cut its stake to 25.1 percent from 40 percent in the joint venture. Last December Alcoa touted its venture with the Saudi Arabian company saying it would become the the world's pre-eminent and lowest-cost supplier of primary aluminium.

The reduction lowers Alcoa's investment to $2.71 billion from $4.32 billion. Maaden is government-run and will likely receive funds from the Saudi government.

An analyst said Alcoa may have been concerned that the money required to invest in the project would have damaged its credit rating. It is also possible that Alcoa is weighing investments in other regions.