Alcan moves forward with its AP50 pilot plant in Saguenay, Quebec

MONTREAL, July 10 -- Alcan announced today that it has signed a US$130-million contract with the French energy company AREVA for the design, engineering and construction of a new high-voltage sub-station that will power Alcan's planned AP50 pilot plant in Saguenay, Quebec as announced on December 14, 2006. "Alcan is pleased to announce the signing of this contract, moving ahead as planned with the realization of the AP50 pilot plant project. AREVA's proven technological expertise makes them a partner of choice for Alcan," said Michel Jacques, President and CEO, Alcan Primary Metal Group. Preparations for the AP50 pilot plant have been under way for several months and are proceeding on schedule and on budget. The demolition of the old-technology Soderberg potlines began in March of 2007 to vacate the facility and make way for the new advanced AP50 potlines. The site will be ready to accommodate construction at the beginning of 2008. "The new AP50 pilot facility will be the cornerstone of Alcan's industrial strategy for Quebec, which has been developed with the support of the Government of Quebec. The signing of this contract with AREVA is another step forward in realizing this project and a demonstration of our commitments to our local and provincial stakeholders," said Jean Simon, President, Alcan Primary Metal Group, North America. Greg Farthing, President, AREVA Canada Transmission and Distribution division said: "We are proud to have been awarded this strategic project as it reinforces our presence in the industrial market and our commitment to Alcan and their investment program in Quebec's Saguenay-Lac-Saint-Jean region." As announced on December 14, 2006, Alcan plans to build a US$550-million pilot plant at its Complexe Jonquiere site in Canada to develop the Company's proprietary AP50 smelting technology. This pilot plant is expected to produce approximately 60,000 tonnes of aluminum per year and will be the platform for future generations of AP50 technology. This pilot plant is the first step in a planned ten-year US$1.8-billion investment program in Quebec's Saguenay-Lac-Saint-Jean region. Alcan Inc. is a leading global materials company, delivering high quality products and services worldwide. With world-class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging, today's Alcan is well positioned to meet and exceed its customers' needs. Alcan is represented by 68,000 employees, including its joint ventures, in 61 countries and regions, and posted revenues of US$23.6 billion in 2006. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003.