Saturday, October 25, 2003
Alcan to invest $150m in China
REUTERS
MONTREAL : Alcan agreed to invest $150m in a 150,000-tonne aluminium smelter in China and could take up a major stake in an expansion already underway for the facility, the company said on Thursday.
Montreal-based Alcan, which hopes to close its 4bn-euro ($4.7bn) offer for all the shares of French rival Pechiney by November 24, said it agreed to form a joint venture with Qingtonxia Aluminum Co and Ningxia Electric Power Development and Investment Co.
Under the agreement, Alcan, the world's second-largest aluminium maker, will acquire a 50% stake in the Qingtonxia smelter and secure power for the 150,000-tonne modern pre-bake smelter located in the Ningxia autonomous region.
Alcan said the agreement also gives it a "substantial operating role" in the smelter and the option to acquire, for an additional investment, up to 80% of a new 250,000-tonne potline, already under construction.
Alcan, which unveiled the joint venture project in June '02, said its initial investment is expected to take place in the first quarter of '04, following customary approvals.
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