Alcan launches breakthrough aluminum technology initiative in France

RHONE-ALPES, France, Dec. 14 /CNW Telbec/ - Alcan is launching a research and development (R&D) initiative centered in France and focused on its leading AP series aluminum smelting technology. This is part of Alcan's new R&D strategy, based on the core competencies of the Company's two R&D hubs in France and Canada. The Company has set an ambitious target of developing a 20 percent more energy efficient and environmentally friendly cell through the accelerated introduction of new innovative technologies.

"Alcan is aggressively pursuing breakthrough aluminum technologies to address rising energy costs and increased environmental expectations," said Michel Jacques, President and Chief Executive Officer, Alcan Primary Metal, while speaking to employees at the Company's R&D Centre in Voreppe. "In line with Alcan's objective of maximizing long-term sustainable value, this initiative will harness a combination of existing and emerging technologies, focused on developing a more energy efficient and cleaner smelting process," added Mr. Jacques.

Alcan's key Rhône-Alpes R&D hub in France will strengthen its position as an innovation platform focused on breakthrough aluminum technologies, creating more than 50 new technology and engineering jobs. This will be supported through Alcan's overall technology spend totalling US$70 million in 2007 in the Rhône-Alpes region.

Alcan will conduct this advanced cell technology R&D at its centres in Rhône-Alpes and continue to enhance the development of its leading AP30 Series technology at its St. Jean-de-Maurienne platform. Over the past ten years, AP Series technology has become the smelting technology-of-choice for the majority of the world's newly installed capacity, outside China and Russia.

The Company has also further strengthened its technology platform in the Rhône-Alpes through its recent US$135 million acquisition of Carbone Savoie, a global leader in the design and production of cathode blocks. Cathode design is a critical factor in the performance of reduction cells in the aluminum electrolysis process.

"These recent developments and this new R&D initiative, anchored in the Rhône-Alpes region, will not only reinforce France's importance to Alcan, but also the Company's position as the world's centre for leading aluminum smelting technologies. These activities will be coordinated closely with Alcan's R&D efforts in Canada," continued Mr. Jacques.

In 2005, Alcan achieved record technology sales and invested US$227 million in global R&D. The Company employs approximately 1,200 people in R&D activities throughout eight sites, including sites dedicated to aluminum technologies in Arvida (Canada) and in St. Jean-de-Maurienne and Voreppe (France). The Company's R&D network includes research laboratories, Applied Engineering Centres and plant technical departments covering all major markets and regions.

Since it combined with Pechiney in 2003, Alcan has continued to develop its new unrivalled AP50 smelting technology at its Rhône-Alpes R&D hub. AP50 operates at an unsurpassed 500 kilo amperes (kA) and is focused on increased productivity and the reduction of full economic cost. AP50 technology is now ready to move from its research phase to industrial development.