Dec 14 2005
Alcan Inc. announced today that following in-depth discussions with a Valais-based consortium led by Albert Bass, the parties concluded that a proposed transaction for Alcan’s Steg, Switzerland primary aluminum smelter is uneconomic and will not ensure the facility’s future sustainability.
"After very constructive discussions, both parties agreed that the proposed potential sale transaction does not present a viable solution for the primary metal and anodes production at Steg and Chippis," said Wolfgang Stiller, President, Alcan Primary Metal Group, North Europe.
Launched in early October, discussions between the two parties involved a full review of the economic prerequisites for ongoing primary metal production at the smelter, which has a capacity of 44kt per year. The findings have been shared with a delegation of the government, the Alcan Aluminium Valais Works Council and employees.
Well in advance of the expiration of the smelter’s power contract this December, the Company has worked to identify opportunities to ensure a sustainable future for the smelter. Alcan continues these efforts, despite a very difficult power supply environment. A final decision on the smelter’s future will be made in January 2006. Regardless of the outcome, it is expected to have no adverse impact on Alcan’s other production activities in the region, dedicated to casting and fabricating aluminum for the extruded and plates businesses in the aerospace, transport, and industry sectors.