Alcan to Expand Automotive Business in North America

Manufacturing plant to be built in the Saguenay

MONTREAL, Sept. 16 -- Alcan Inc. today announced a CAN$-25-million investment for the construction of a new manufacturing facility for the production of aluminum structural assemblies for the automotive industry in the Saguenay region of Quebec. The facility will create 35 new jobs with a potential of reaching close to 50 employees with the expected growth of the business.

This venture is part of a strategic expansion of Alcan's North American automotive supply business, which includes the establishment of a new structural products group to engineer and market lightweight structural sub-assemblies and crash-management systems.

"The new plant expands on the significant expertise Alcan has developed in Europe in the application of aluminum for automotive structural and crash- management systems and we are confident these products will find a receptive market in North America," said Travis Engen, President and Chief Executive Officer of Alcan Inc. "It demonstrates our commitment to Quebec to developing value-creating products and to promoting economic diversification in the regions where we operate."

Construction will begin in fall 2003 with production scheduled to start in the fourth quarter of 2004. Initially, the Saguenay facility, together with a complementary plant in Novi, Michigan, will manufacture aluminum bumper beams as part of the Alcan Automotive Structures business within the Alcan Engineered Products group.

At the start of production, the new facility is expected to produce 600,000 aluminum bumpers per year, but Alcan's future plans are to expand the product range to include side-impact beams, instrument panel supports and other weight-saving structural sub-systems.

"Our objective is to build on our leading position in the supply of lightweight solutions for automotive customers in North America by expanding our product range," said Mr. Kurt Wolfensberger, President of Alcan Engineered Products and Alcan Automotive. "The new manufacturing plant in the Saguenay will become a key element of Alcan's strategy in North America, which is to put in place, in partnership with the regions, the basis for a centre of excellence in the manufacturing of advanced automotive aluminum structural assemblies."

Alcan is a multinational, market-driven company and a global leader in aluminum, packaging, and recycling with 2002 revenues of US$12.5 billion. With world-class operations in primary aluminum, fabricated aluminum as well as flexible and specialty packaging, Alcan is well positioned to meet and exceed its customers' needs for innovative solutions and service. Alcan employs 54,000 people and has operating facilities in 42 countries.