Alcan Plans to Split in Two

From Evansville Courier & Press

EVANSVILLE, IN — Alcan Inc. on Tuesday announced plans to split in two. Alcan intends to spin off essentially all of its aluminum rolled products businesses into a separate, as-yet unnamed independent company. The new company would produce beverage can, automotive sheet and other flat products.

Alcan then would focus on its primary aluminum businesses as well as its low-cost alumina and high value-added speciality packaging, aerospace and engineered products businesses.

Much of Sebree’s metal is formed into billet, which is telephone pole-shaped aluminum used to make ladders, window frames and other extruded products.

Alcan in recent years has acquired two competitors — Pechiney of France and Alsuisse of Switzerland — to make itself as the largest aluminum company, in terms of revenues. (Alcoa produces more metal each year, however.)

But Lee said Alcan President and CEO Travis Engen’s “objective is not to be the biggest, but to maximize value for shareholders.”

Alcan said the spinoff would allow the two companies to focus on their respective specialties. It also would provide a means of separating ownership of two rolling mills in France and Germany, as required by European regulators.

The new company would be the world’s largest aluminum rolling business. Plans call for it to be headquartered in Canada, as is Montreal-based Alcan.

It would have approximately 10,000 employees worldwide, while Alcan would be left with 78,000 employees and revenues of approximately $20 billion.

The deal is subject to regulatory and shareholder approval. Alcan expects to complete the transaction before the end of 2004.

If approved, Alcan shareholders would receive shares in the new company in addition to retaining their Alcan shares.

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