Global aluminium giant Alcan Inc on Friday announced its plan to sell its 45 per cent stake in India's Utkal Alumina International Ltd, its joint venture with Aditya Birla group flagship Hindalco Industries.
Alcan has already taken initial steps for selling the stake and expects to complete the transaction during the second quarter of 2007, it said in a statement in Montreal.
The JV was established in 1992 and involved development of a new bauxite mine and alumina refinery in Orissa. Hindalco holds the remaining 55 per cent stake in Utkal Alumina.
"We have carefully weighed the opportunity and risk presented by the Utkal Project and, given constraints within the governance structure that limit Alcan's ability to participate in key decisions, believe that we have acted in the best interests of all our stakeholders," Jacynthe Ct, president and CEO, Alcan Bauxite and Alumina, said.
Alcan did not specify the potential buyers or the price at which the stake is likely to be sold.
Earlier this year, Hindalco acquired a former Alcan group firm Novelis in a six billion dollar transaction.
He said Alcan would focus on growing and executing its pipeline of projects in bauxite-rich regions, which will leverage its world-leading alumina refining technology.
The Utkal Project, which is currently in an engineering phase, will continue to benefit from an Alcan technology supply agreement.
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