Apr 13 2007
Alcan announced today its intention to sell its 45% interest in India's Utkal Alumina International Limited (Utkal). The joint venture was established in 1992 and involves development of a new bauxite mine and alumina refinery in the Indian state of Orissa (Utkal Project). Alcan has already taken initial steps leading to the sale process and expects completion during the second quarter of 2007.
"Alcan is committed to sustainable and profitable growth that maximizes value for its shareholders," said Jacynthe Côté, President and CEO, Alcan Bauxite and Alumina. "The Company will keep a strong focus on growing and executing its pipeline of projects in bauxite-rich regions, which will leverage its world-leading alumina refining technology," continued Côté. "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."
The Utkal Project, which is currently in an engineering phase, will continue to benefit from an Alcan technology supply agreement. Hindalco, part of the Aditya Birla group, holds the remaining 55% interest in Utkal.