Jul 13 2006
Alcan has announced that it has begun consultations with unions and employee representatives for a proposed sale of selected assets at the Company’s Affimet aluminum recycling plant in Compiègne, France. The Company expects to incur a pre-tax, non-recurring, charge of approximately US$40 million – principally cash, covering environmental provisions, dismantling costs and severance – in the second quarter of 2006 related to the proposed sale.
"After thoroughly exploring and examining various alternatives and despite Alcan’s considerable efforts to sustain Affimet over the past five years, the site’s performance has been adversely affected by challenging market conditions. This proposed course of action represents the most viable solution for ensuring Affimet’s future," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group.
The proposed sale of Affimet would result in a sale of the primary casting and processing equipment and business, including the processing of Alcan internal scrap, to U.K.-based RecovCo, a specialist designer and operator of aluminum recovery technologies and facilities focused on transforming aluminum scrap and dross into reusable aluminum metal. The remainder of the Affimet facility would be closed. The site presently employs 212 people, of which approximately 85 would continue to work for RecovCo following the proposed transaction.
Alcan intends to propose appropriate measures to support the transition for Affimet’s customers and to implement a social plan that would provide those employees not retained by the new owner with assistance and alternative employment opportunities.
"After thoroughly exploring and examining various alternatives, this proposed reorganisation represents the most viable solution to sustain Alcan’s European primary metal assets. The Company has a long tradition of treating its employees fairly and is committed to carrying out this proposed reorganisation process transparently, so as to find the best solutions for the affected employees," added Jean-Philippe Puig, President, Primary Metal Europe.
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