ALCAN TO EXPAND KINGSTON, ONTARIO PLANT TO MEET MARKET GROWTH FOR AUTO SHEET AND DISTRIBUTION

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ALCAN TO EXPAND KINGSTON, ONTARIO PLANT TO MEET MARKET GROWTH FOR AUTO SHEET AND DISTRIBUTION
02 March 1999 - Alcan Automotive

Alcan Aluminium Limited announced today that it will invest $46 million (U.S.) to expand production of aluminum rolled sheet for the automotive and distribution markets.

The expansion, to be completed by the end of 2000, will increase Kingston Works' production over the next several years by 40 percent and further advance Alcan's position as a leading supplier to these two strategic markets. Aluminum sheet produced at Kingston is used increasingly by automakers for exterior body panel applications such as hoods, fenders, doors and trunks and by leading North American distribution customers for general end-use purposes.

The expansion will include a 8,260 square metre (90,000 square foot) addition, new and upgraded finishing equipment, as well as the installation of highly efficient, integrated handling and packaging systems.

Commented Richard B. Evans, Executive Vice-President, Fabricated Products - North America, 'This investment affirms Alcan's commitment to meet the needs of the developing auto sheet market as well as expanding our capabilities to build on the company's growing role as a leader in the distribution sheet business.'

In recent years, Alcan has significantly increased its participation in both auto sheet and distribution markets, with Kingston Works providing a critical role in the company's share growth. In 1998, Alcan secured new body panel sheet business with major customers and expects its shipments to this market to continue rising in coming years. Furthermore, Alcan's shipments to North American distributors rose by 12 percent in 1998, widely outperforming the industry.

Alcan expects that approximately 20 to 30 new positions will be added at Kingston Works following completion of the expansion.

http://www.alcanautomotive.com

About: Alcan Automotive
Alcan is a multinational company in aluminium and packaging, as well as aluminium recycling, with operations in primary aluminium, fabricated aluminium as well as flexible and specialty packaging, aerospace applications, bauxite mining and alumina processing. Alcan employs 88,000 people and has operating facilities in 58 countries and regions.

The merger of Alcan Inc. with Alusuisse Group Ltd. has created a materials company that offers global market coverage and advanced technology solutions in aluminium and other lightweight materials. Alcan has become a leader in the significant growth taking place for aluminium in the automotive sector as manufacturers strive to produce safer, lighter, affordable vehicles.

The organisation currently represents a US$13 billion global enterprise with strong anticipated growth in our automotive businesses, operating under the banner of Alcan Automotive.

A global R&D network, with technology centres located in key markets around the world, combined with an extensive network of aluminium smelters and manufacturing facilities, provides the automobile industry with complete solutions, from materials delivery to design and manufacture of quality vehicle components and modules.

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