Alcan Joins Chinese Venture for Aircraft Materials

September 12, 2007 — Alcan Inc. has entered into a joint venture with a privately owned Chinese foil producer, Dingsheng Aluminium, to set up a greenfield facility at Zhenjiang in Jiangsu province, to produce heat-treated plates for aerospace and general engineering applications. Alcan is the majority partner in the project. The products would be produced in "advanced patented alloys," and Alcan states the plant will enhance its position in the heat-treated plate markets. These products are among the aluminum products in greatest demand by the aircraft and aerospace manufacturers, who use the material for wings and fuselages. U.S. aluminum producers have several similar projects underway to expand their plate processing capabilities. Alcan's new venture would also serve general engineering markets, such as semi-conductors, home appliances, and plastic injection molds. No cost projections nor any timetable were released for the project. The central government in Beijing has yet to approve the construction project, and final approval by Alcan's directors is pending, also. Alcan is in the process of being taken over by Rio Tinto Ltd., which earlier this year bested Alcoa in a takeover battle with a $38.1-billion offer. "Today's signing marks a major milestone in Alcan Engineered Products' continued expansion into the Chinese market," stated Christel Boires, president and CEO of Alcan Engineered Products. "This is a major project that will reinforce our leadership position in the growing aluminum plate market and as a global leader in providing innovative solutions to our key customers."