Zinc producer Nyrstar cuts 205 jobs in Belgium

BRUSSELS, Oct 15 (Reuters) - Belgium's Nyrstar (NYR.BR), the world's biggest producer of zinc, said on Wednesday that it will cut about one quarter of its workforce in Belgium over the next two years, in a drive to reduce costs.

The group, which employs about 800 people in Belgium, said it will cut 205 jobs at its Balen/Overpelt plant as part of a wider effort to enhance its performance in the face of difficult economic conditions.

"Implementation of these intended changes at Balen/Overpelt is expected to generate annual cost savings of 14 million euros through improved production efficiencies and labour savings," the group said.

The plant is Nyrstar's largest zinc smelter and produced 255,000 tonnes of zinc cathode in 2007.

Nyrstar is a joint venture which combines the zinc smelting assets of Belgium's Umicore (UMI.BR) and Australia's Zinifex ZFX.AX.

It recently agreed to sell its 60 percent stake in Chinese joint venture Yunnan Zinc Alloys. (Reporting by Antonia van de Velde; Editing by Erica Billingham)