Jan 5 2006
Alcan Inc. announced today that it has signed an agreement in principle for the sale of its Froges, France, rolling mill to Industrie Laminazione Alluminio S.p.a (ILA). Based in Sardinia, Italy, ILA specializes in continuous casting and aluminum foil rolling, providing European and Mediterranean medium-size companies with aluminum solutions for the packaging and building markets.
"We are pleased with the outcome of a process that began more than a year ago and is in line with Alcan’s strategy to focus on core operations within its Engineered Products business. It will enable Froges to benefit from new market opportunities and a secure and competitive supply of continuously cast metal," said Michel Jacques, President and Chief Executive Officer, Alcan Engineered Products. "ILA and Froges share complementary portfolios and focusing Froges' activities on foil for the packaging industry will further contribute to the mill’s sustainable future," he added.
With investments planned to upgrade efficiency and environmental performance, ILA intends to increase Froges' production volumes of foil products. ILA also intends to retain all employees. Froges rolling mill will operate under the name of Laminoirs Aluminium Froges. The transaction, which is not material to Alcan, is expected to be completed in the first quarter of 2006. Froges has almost 70 employees and annual revenues of approximately €25 million.