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Alcan Stakes $550 Million on Pilot Smelting Process

Monday, Dec 18, 2006
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December 18, 2006 — Alcan Inc. will build a $550-million pilot plant at its Jonquiere, PQ, complex to prove the commercial viability of its AP50 electrolytic technology for primary aluminum production. The pilot plant will produce a projected 60,000-metric tons/year of metal, beginning in 2010. Construction will begin in 2008. After the initial demonstration of the AP 50 technology, Alcan projects a further expansion of 390,000 metric tons/year of new AP 50 capacity in Quebec's Saguenay-Lac-Saint-Jean region by 2015.

The AP series is one of the world's most successful electrolytic technologies, and was acquired by Alcan through its 2004 acquisition of Pechiney S.A. Alcan sought to strengthen the brand by its recent acquisition of cathode manufacturer Carbone-Savoie for $135 million.

The Quebec installation will be a demonstration of the next generation of the AP technology, AP 50. The numbers in the title refer to the amperage of the electrodes used in the system; the current standard is AP 35. AP50 will operate at a 500 kilo amperes (kA), aiming to achieve high productivity at reduced costs.

Richard Evans, president and CEO of the Montreal-based aluminum producer, stated the "pilot plant underlines Alcan's position as the world leader and partner-of-choice for aluminum smelting technologies, further reinforcing its unique competitive advantage in line with Alcan's objective of maximizing long-term sustainable value." He said the plant would compliment the aluminum technology R&D initiative Alcan announced earlier .

In that effort, Alcan outlined plans centered around the AP series to develop a 20% “more energy efficient and environmentally friendly” reduction cell. That research will be centered at its research center in Voreppe, France, and is staked by a $70-million budget for 2007.

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