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Alcan Cutting Jobs in Europe

Production shifted to other plants will 'reinforce them as centers of excellence.'
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rolled out a plan to cut at least 350 jobs in Europe.

The Montreal-based aluminum giant said it proposed a realignment of its packaging operations to the European Works Council. Alcan said it would close food plants in Muhltal and Roth, Germany, and a tobacco plant in Amsterdam, shedding a total of 250 jobs. Alcan also wants to shed an added 100 jobs in reorganizing beauty packaging operations throughout Europe.

"Alcan continually reviews its business portfolio and manufacturing network to ensure its long-term viability and competitiveness," said packaging chief Christel Bories. "This proposed realignment is necessary to create favourable conditions for future growth and expansion. Maintaining competitiveness is the best insurance for long term sustainable employment."

The news wasn't all bad, though. "Production from the plants proposed for closure would be transferred to other Alcan Packaging plants to reinforce them as centers of excellence," Alcan said, noting that it employs 13,500 in Europe now.

Alcan said it could also consider divesting itself of its beauty packaging plant located in Provins, France, and its food packaging plant in Zaragoza, Spain. A total of 320 people work at those plants.

On Wednesday, Alcan shares gave up 59 cents to $34.75.