Alcan

Alcan Inc. () was a world giant in the fields of the production of Aluminum and the Emballage. Its decision-making center was located at Montreal, whereas the seat of the activities of packing and that of the machined products was located at Paris. The company was repurchased by Rio Tinto in 2007 pennies the entity Rio Tinto Alcan.

Description

Before its repurchase by Rio Tinto in 2007, Alcan is the 3rd world leader of the manufacture and the marketing of aluminum products and packing (2007), and the world leader of technologies of electrolysis for the primary education production of aluminum.

Alcan recorded a turnover of 23,6 billion dollars in 2006. In the first half of 2007, its benefit reached 591 million dollars, in rise of 30% compared to the same period of the previous year.

CA by family of products is distributed as follows (2006):

produced Aluminum of the first fusion resulting from the proceeded of electrolysis (33,7%, n° 2 world): ingots of Rolling, Extrusion, Wiredrawing and Foundry, Anode S for the electrolysis, etc;
produced machined (29,5%): profiled out of alloy, castings of precision, cables, wire machine, etc;
packing (29,4%): Packing S in Plastic, aluminum, paperboard and paper intended for the food products, cosmetics, pharmaceutical and medical (n° 1 world), packing of products of tobacco (n° 2 world);
Alumina and Bauxite (7,2%);
others (0,2%).

In the world

Alcan has more than 379 establishments in the world. One counts of them 11 in Africa, 125 in North America, 16 in South America, 33 in Asia, 8 in Australia and 186 in Europe. Alcan has several railroads, stoppings hydroelectric and other related establishments which facilitate the production and the transport of the end product.

Quebec:

Alcan holds hydraulic rights on grounds of the Crown to be able to produce its electricity. For example, on the river Péribonka, “it exploits three stoppings under the terms of a lease of hiring coming in the term in 2033 and renewable until 2058. ” It has also an agreement of purchase of electricity with Hydro-Quebec which finishes in 2023.

Alcan counts: 8000 employees in Quebec, from which approximately 800 are at the head office with Montreal.

Alcan intends to renovate the complex of alum works of Arvida with Saguenay soon, a project of 600 million $ EDGE which falls under a global project of investment of 2 billion $ EDGE (1.8 $ US billion) in the area the Saguenay-Lake-Saint-Jean. This project would include in particular aggrandissement Alma alum works for 1 billion $ Can. However, the advertisement of the project still remains to be come.

History

Alcan is one of older and most profitable the producer of aluminum in the world. This company was dissociated since the beginning of the 20th century with major technological innovations in the extraction of the Bauxite and the transformation secondaries. Moreover, good conditions of work and wages decent (even in the less industrialized countries) always kept the production rate on a very high level.

In 1901 the first factory of electrolysis of Canada is built in Shawinigan, in Quebec. The first day will produce 760 kg of aluminum

In 1902 the Canadian subsidiary company of Pittsburgh Reduction Company (which was going to become Alcoa) is baptized Northern Aluminum Company, Limited.

In 1928, Alcoa is fragmented (following the pressures anti-monopoly of the US government?). From there, Aluminum Limited (which will become Al uminum Company off Can ada) takes control of the majority of the credits of Alcoa located apart from the United States.

In 1966, Aluminum Company off Canada becomes Alcan Aluminum Limited.

From 1960 to 1980 Expansion of the capacity of transformation in many countries of which the United States. Investments in new factories of electrolysis in Australia, in the United Kingdom, in Brazil and in India, and in bauxite mines and alumina factories in Africa, in Brazil and in Australia.

In 1999, Alcan makes an attempt for a fusion between them of Algroup (Alusuisse Lonza Group, Suisse) and of Pechiney (France). It was blocked by the European commission by fear of a situation of Monopole. Then the following year, Alcan takes the control of Algroup before making in the same way, in 2003, for Pechiney. Its turnover is then of 25,7 billion USD for 73.000 employees throughout the world.

Repurchase by Rio Tinto

In May 2007, the American Alcoa makes attempt at tender offer on Alcan. But on July 12th, 2007, Alcan and the anglo-Australian company Rio Tinto publish a common press release announcing that Rio Tinto " will formulate an offer recommended on Alcan, entirely in numéraire" of 101 US dollars by action, and that " the Board of directors of Alcan recommends the acceptance of the offre" unanimously; , which develops Alcan to some 38 billion dollars US.

The reaction of the shareholders is very positive since the action with the Bourse of Toronto (TSX) is in progression of more than 8%.

The company thus formed should bear the name of Rio Tinto Alcan and be the first producer of Aluminum in the world. The offer is open since July 24th, 2007 and can be accepted by the shareholders until September 24th, 2007, subject to prolongation. The success of the purchase offer was announced on October 23rd, 2007, which makes Rio Tinto the world number one of aluminum in front of Russian Rusal and American Alcoa.

See too

related Articles

Pechiney
Alcoa
Rusal (Russia)
List of aluminum producers

external Bonds

Official site
Alcan France

Sources

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