New Alcan Automotive Strategy Focuses on Global, Value-Adding Growth

    MONTREAL, CANADA, July 17 - Alcan Inc. has
announced a new automotive strategy and organization designed to maximize
value creation through profitable growth in the expanding market for
lightweight automotive materials and solutions.

    Alcan's automotive activities have been restructured to move from a
business development emphasis to one of market growth in four selected
business areas: vehicle structures, engineered shaped products, high-strength
sheet products and primary ingot products. The company's business activities
in this sector will be known as Alcan Automotive.

    The announcement is an outcome of last year's merger of Alcan with Zurich
based Alusuisse Group Ltd, in which both companies contributed leading
automotive market positions. The new organization is a result of the
integration of both companies' complementary automotive strengths.

    The new organization will be led by Kurt Wolfensberger, who is named
president, Alcan Automotive, in addition to his current role as president,
Alcan Engineered Products. Mr. Wolfensberger will lead Alcan's automotive
activities and will coordinate the implementation of the global strategy,
including the direction of customer alliances.

    "This strategy reflects the fact that lightweight solutions have now
achieved a proven position in the automotive industry," says Mr.
Wolfensberger. "This in turn drives the need to transition from a business
development focus to one of value maximization through profitable growth.
Consistent with this, we are redefining our operating businesses with a market
segment focus. We will concentrate on key customers in attractive market
segments that have strong growth rates and where our expertise, technology and
assets provide a real competitive advantage."

    The new Alcan Automotive organization will target the following business
segments:

    AUTOMOTIVE STRUCTURES & DESIGN - lightweight structural systems and
    technology solutions.

    AUTOMOTIVE ENGINEERED SHAPED PRODUCTS - forged and cast components for
    suspension, chassis, powertrain and structures.

    AUTOMOTIVE SHEET - high-quality, high-value aluminum sheet supply for
    automakers.

    AUTOMOTIVE PRIMARY PRODUCTS - primary ingot for cast automotive products.

    Transportation is the largest and fastest-growing market segment for
aluminum. By Alcan's estimates, total Western World shipments to the
transportation market topped 8.4 million metric tons last year. Automotive
aluminum accounts for the major share of the growth, climbing from typically
less than 100 lbs. (45 kg) per vehicle in the late 1970s to an estimated
255 lbs. (116 kg) today. In North America, Alcan expects that figure to
surpass 350 lbs. (156 kg) per vehicle by 2010. Meanwhile, the European
Aluminium Association estimates that the amount of aluminum used in each
European car will increase from the present 198 lbs. (90 kg) to 287 lbs.
(130 kg) by the year 2005.