Alcan plans to improve its packaging business

Announces changes in two of its packaging business sectors aimed at improving their positions in their respective market segments.

12/08/05 Canada, Alcan Inc. has announced changes in two of its packaging business sectors aimed at improving their positions in their respective market segments.

In its Global Pharmaceutical Packaging sector, Alcan will close its Cayey pharmaceutical glass vial operation, based in Puerto Rico, in order to streamline its North American vial manufacturing network. Poor demand for glass vials in the Puerto Rican market is the main reason Alcan is taking this measure.

As part of the refocusing of its Food Packaging sector, Alcan has completed the sale of its Pet Plas Packaging Ltd. food plastic bottles company to Esterform Packaging Limited, based in Tenbury Wells (Worcestershire), United Kingdom.

The closure of the Cayey facility, which affects 62 people, should occur by October 9, 2005. The plant's production lines will be redistributed to other glass tubing plants in North America. Plans have been made to ensure a smooth transition for Alcan customers. A variety of support programs have been developed to assist affected employees during this period. This closure does not affect the plastics packaging operations also located in Cayey, Puerto Rico.

Esterform Packaging Limited specializes in blow-molded and injection- molded plastic bottles primarily for beverages including juice, soft drinks , water and dairy. Pet Plas, a manufacturer of custom PET plastic bottles and preforms, employs 90 people and operates one plant in Leeds, England. The unit had 2004 sales of US$50.5 million.

Alcan is a multinational, market-driven company and a global leader in aluminum and packaging. With world-class operations in primary aluminum, fabricated aluminum as well as flexible and specialty packaging, aerospace applications, bauxite mining and alumina processing, today's Alcan is well positioned to meet and exceed its customers' needs for innovative solutions and service. Alcan employs almost 70,000 people and has operating facilities in 55 countries and regions.

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