Oct 11 2005
Alcan has announced that it has received an offer from Praxair, for the sale of the Company’s high-purity (5N) activity at the Mercus processing mill in France. Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide.
"In June 2005, we announced a restructuring project for the Mercus site. We intended to cease the fabrication of high-purity products (4N) for the capacitor markets, while continuing to look for a buyer for the high-purity (5N) products," said Michel Jacques, President and Chief Executive Officer, Alcan Engineered Products. "We are pleased with the outcome of this extensive process. This agreement is aligned with our strategy to focus on core activities," he added.
Praxair has in recent years made a number of acquisitions to broaden the scope and offering of its Praxair Electronics division. The acquisition of the 5N activity would be a continuation of that process. It is Praxair's intention to continue to serve existing customers for 5N products and seek opportunities to expand that business.
"The addition of high-purity metal alloys production to our portfolio will further strengthen Praxair's ability to grow our materials science business in the semiconductor market through improved technology and better supply chain management for our products," said Ray Roberge, President, Praxair Electronics. "Through this transaction, we will also gain a materials supply position in the flat panel display market which complements our already established gases business in that industry."
Following Alcan’s information and consultation process with the relevant workers’ councils, the parties expect to enter into a definitive asset transfer agreement. The transaction should be completed in the first quarter of 2006.
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