Canadian Business reported that Rio Tinto Alcan is shedding 350 jobs in France to reduce costs amid a structural reorganization to address a deteriorating competitive position. The job losses will be spread among seven French locations. Initial efforts will be to reduce employment through voluntary departures.

The Montreal based aluminum division of Rio Tinto said that Canada is unaffected by the move.

Mr Jean Philippe Puig primary metals president for Europe, the Middle East and Africa said that Rio Tinto Alcan's specialty and primary production in France are losing money because of the large drop in prices and demand for the metal.

He said that the exceptionally high level of world inventories don't allow us to foresee a significant improvement in the short term. The global mining giant's French activities are particularly affected by a competitive structural deterioration across all of its locations, but particularly one in Saint Jean de Maurienne. He said that previous measures taken at the start of the economic crisis to address the situation have been insufficient.

(Sourced from Canadianbusiness.com)