Alcan Completes Sale Of Its Ferroalloy Division

Alcan Inc. has announced that it has completed the sale of its ferroalloy division, Pechiney Électrométallurgie (PEM), to Ferroatlántica, S.L., a leading European ferroalloys and independent electrical power producer based in Spain. Initially announced in December 2004, the transaction will generate net proceeds, net of closing adjustments, of approximately Euro 120 million.

"We are pleased to have completed the sale of Pechiney Électrométallurgie. At Ferroatlántica, PEM has found a good home and we wish the business future success," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group. "The completion of this sale is aligned with Alcan’s objective of focusing on our primary aluminum business," she added.

This transaction was subject to the consultation of French workers representatives and merger control clearance from Spanish, German, US and South African competition authorities.

PEM employs more than 1,200 people in France and South Africa and recorded net sales of approximately Euro 300 million in 2004.

http://www.alcan.com

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