MONTREAL (CP) -- Rio Tinto Alcan is permanently closing its Beauharnois smelter in Quebec and curtailing production at the Vaudreuil alumina refinery.
The moves announced Tuesday are part of a new six percent reduction in aluminum production, which will cost 1,100 jobs worldwide at the international metal giant.
The Beauharnois smelter southwest of Montreal, which opened in 1943 and employs 220 people, will cease operation by the end of the second quarter of this year.
Other actions include the planned sale of Rio Tinto's half-interest in the Alcan Ningxia joint venture in China.
The new scalebacks follow curtailments late in 2008 that cut output by five percent, as the company struggles "to align production with customer demand."
The total 11 percent output reduction amounts to 450,000 tons annually.
Of the 1,100 jobs being eliminated worldwide, 800 are Rio Tinto Alcan employees and 300 are on contract.
"In addition, substantial cost reduction programs are being implemented across all Rio Tinto Alcan facilities," the company stated.
The company did not specify a workforce impact at the Vaudreuil refinery about 200 kilometers north of Quebec City, where annualized production will be "temporarily curtailed" by 400,000 tons.
Additionally, the Centre de produits cathodiques in Jonquiere, Que., will reduce its carbon operations by half.
"Our goal is to align production with customer demand and reduce our operating costs as much as possible," stated Dick Evans, who is retiring Feb. 1 as chief executive of Rio Tinto Alcan.
The new CEO, Jacynthe Cote, "is in the process of carrying out a full review of Rio Tinto Alcan's organizational structure and operating strategy in light of the current economic context," the company said. This review is to be complete in early February.
"The global economic downturn has meant that we must make difficult but necessary choices for our organization, and we will make sure that those affected are treated with fairness and respect," Cote stated.
"We will continue to honor our commitments to employees, customers, governments, communities and other key stakeholders."
The Beauharnois smelter, with 52,000 tons of annual production, uses technology that was to be phased out by 2015 to meet environmental regulations. The company said casting work might continue at the plant.
Other curtailments affect Rio Tinto Alcan operations as far afield as New Zealand, Britain and Cameroon.
Rio Tinto shares declined $5.99, 6.75 percent, to US$82.78 in morning trading on the New York Stock Exchange.
