| Alcan Inc. (NYSE, TSX: AL) announced today to the European Works Council a proposal for the realignment of its packaging portfolio in Europe. The meeting included discussions regarding general organization and proposed restructuring projects affecting the Company’s food, tobacco and beauty packaging sectors.
"Alcan continually reviews its business portfolio and manufacturing network to ensure its long-term viability and competitiveness," said Christel Bories, President and Chief Executive Officer, Alcan Packaging. "This proposed realignment is necessary to create favourable conditions for future growth and expansion. Maintaining competitiveness is the best insurance for long term sustainable employment," she added.
The proposed restructuring effort would include:
Food Packaging Sector:
- In Germany, Alcan Packaging Mühltal, 145 employees, and Alcan Packaging Roth, 66 employees, would be closed as a result of customer delocalization and over-capacity in the Western European food packaging market.
Tobacco Packaging Sector:
- Alcan Packaging Amsterdam, 47 employees, would be closed due to over-capacity in the European tobacco market.
Beauty Packaging Sector:
- A reorganization in several European countries, which could lead to a reduction of approximately 100 jobs.
Production from the plants proposed for closure would be transferred to other Alcan Packaging plants to reinforce them as centers of excellence.
Alcan Packaging presently employs 13,500 people in Europe. This proposed restructuring would lead to a total reduction of approximately 350 jobs. A variety of support programs would be developed to assist affected employees.
The Company could also consider the potential divestment of its Beauty packaging plant located in Provins (France), 168 people, as well as its Food packaging plant in Zaragoza (Spain), 152 people, as part of its strategy to concentrate its investments on its core businesses.
"We are very conscious of our responsibilities and we intend to manage the social and human consequences of these critically important actions in the most sensitive way," added Bories.
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 services. Alcan employs approximately 70,000 people and has operating facilities in 55 countries and regions.
Statements made which describe the Company’s intentions, expectations or predictions may be "forward-looking statements" within the meaning of securities laws. By their nature, forward-looking statements involve risk and uncertainty; the Company’s actual results could differ materially from those expressed or implied in such forward-looking statements.
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