Rio Tinto Alcan closing Quebec smelter, cutting production
Last Updated: Tuesday, January 20, 2009 | 11:08 AM ET
CBC News
Rio Tinto Alcan plans to shut down the Beauharnois smelter in Quebec permanently as the aluminum company announced a major cut to its output and the elimination of 1,100 jobs.
The company said the Beauharnois smelter, which was built in 1943 and employs 220 people, will cease operation in the second quarter of this year, pulling out 52,000 tonnes of annual aluminum production.
Rio Tinto Alcan also said it will temporarily curtail production at its Vaudreuil alumina refinery in Quebec by 25 per cent, or 400,000 tonnes, while carbon operations at its Centre de produits cathodiques in Jonquiere, Que., will be cut by 50 per cent. The company did not disclose how many jobs will be affected by those production cuts.
The company said the 1,100 jobs that are being eliminated around the world, include 300 contractors and 800 employees.
Overall aluminum production is being cut by six per cent, bringing Rio Tinto Alcan's total output reduction to 11 per cent when added to previous reductions.
"Our goal is to align production with customer demand and reduce our operating costs as much as possible. Increasing efficiency throughout our operations and streamlining our organization will be crucial to achieving our objectives and preserving value for shareholders," said Dick Evans, the company's chief executive, in a release.
In addition to production cuts in Quebec, the company also announced reductions at its aluminum operations in France, the United Kingdom and Norway.
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