Jul 1 2005
Alcan Inc. announced today that it has begun consultations with employee representatives at both its Mercus and Froges sites in France, regarding proposed restructurings driven by the migration of the world’s leading electronics manufacturers to Asia and increased competition from countries in that region. The restructurings reflect a change from the Company’s strategy of selling the businesses announced November 25, 2004. The planned steps include the suspension of one of two activities at the Mercus high-purity-metal processing mill and the closure of the Froges rolling mill.
“Alcan regularly reviews its operational portfolio as markets and economic conditions change,” said Michel Jacques, President and Chief Executive Officer, Alcan Engineered Products. “Both of these mills have been for sale since November 2004. Unfortunately our efforts to find potential buyers have not succeeded and we have had to weigh alternative options. At Mercus, this involves a restructuring initiative to make the site more competitive and to safeguard a number of positions. At Froges, the change in market conditions has made it impossible to maintain the site’s operations, forcing us to consider closing the mill,” he added.
At Mercus, the restructuring measure proposes ending the fabrication of high-purity products for the capacitor markets and eliminating approximately 30 jobs out of the 58 at the mill. This would not affect the super-high-purity products, as Mercus maintains a solid position in this growing market. However, Alcan will continue to look for a buyer for these remaining operations, which will remain in the Company’s portfolio for the time being.
At Froges, the proposed closure would involve the foil rolling mill, where the main product line is the high-purity foil for the capacitor market. All 68 jobs at this mill would be affected. There would be no impact on the neighbouring Packaging site.
Alcan has a long tradition of collaborating with its employees and their representatives, and the Company is committed to carrying out this restructuring process transparently, so as to find the best solutions for the affected employees and to minimize the economical impact on both areas.
Alcan is a multinational, market-driven company and a global leader in aluminum and packaging. With world-class operations in primary aluminum, fabricated aluminum as well as flexible and specialty packaging, aerospace applications, bauxite mining and alumina processing, today’s Alcan is well positioned to meet and exceed its customers' needs for innovative solutions and service. Alcan employs almost 70,000 people and has operating facilities in 55 countries and regions