Alcan Expands Production of Automotive Components in Europe

SINGEN, Germany, June 26 /PRNewswire/ -- Alcan plans a multi-million- dollar expansion of its European production facilities for aluminum automotive components, according to Kurt Wolfensberger, president of Alcan Automotive.

SINGEN, Germany, June 26 /PRNewswire/ -- Alcan plans a multi-million-
dollar expansion of its European production facilities for aluminum automotive
components, according to Kurt Wolfensberger, president of Alcan Automotive.
    Speaking at recent ceremonies to mark the three-millionth aluminum bumper
system produced at Alcan's Gottmadingen manufacturing complex near Singen,
Germany, Wolfensberger said the company will more than double its Gottmadingen
production capacity with three new manufacturing plants for bumper systems and
instrument panel supports by 2005. Ground-breaking for the three plants will
take place this month.
    This will be the second expansion of the Gottmadingen complex, which
opened in 2000 to produce crash management systems -- bumper components and
side-impact beams -- for European car manufacturers. Earlier this year, Alcan
completed its first expansion of the complex, increasing the production of
bumpers and side-impact beams and adding two new buildings for the manufacture
of aluminum instrument panel supports.
    The facilities which officially opened in June raised the plant's daily
production to 8,000 bumper beams, 8,000 side-impact beams and more than 6,000
instrument-panel supports. The planned, second expansion will further
increase production in these product lines. The complex today covers an area
of 91,500 square-feet and is expected to generate annual sales in the order of
$57-million.
    The continued expansion of the Gottmadingen complex underlines a growing
demand for aluminum automotive components, Wolfensberger noted. He added that
Alcan already has invested more than $19-million in manufacturing equipment at
Gottmadingen to support its global automotive business. The facilities
currently employ nearly 100 people.
    "This new production capacity will enable us to satisfy an increasing
market demand for innovative, lightweight automotive components and systems,"
he said. "As part of our strategy, we are aiming to double the annual sales
of our Automotive Structures and Design business unit to more than $200-
million and this production site will make an important contribution."
    The Gottmadingen facility currently manufactures bumper beams and side-
impact beams for major automobile producers including DaimlerChrysler, Opel,
MCC and Audi. Production will begin this year also for BMW and PSA Citroen.
Alcan's extruded multi-chambered bumpers allow for the controlled absorption
of crash energy in the event of a collision. Instrument panel supports are
produced for a number of Volkswagen models. These modules consist of deep-
drawn aluminum shells with cast-aluminum and forged-aluminum nodes. The sheet
components are joined by electron-beam welding.
    Wolfensberger said that the new production facilities at Gottmadingen
constitute another step in the strategic extension of Alcan Automotive's
product and service offerings in the field of components and complete
assemblies for the global automotive market. Cost and employment details for
further expansion of the Gottmadingen complex during the next two to three
years were not disclosed.
    Alcan Automotive is a world leader in the supply of aluminum-based
solutions for the automotive and mass transportation markets. Its parent
company, Alcan Inc., is a multinational, market-driven company and a global
leader in aluminum and specialty packaging with 2001 revenues of $12.6-
billion. With world-class operations in primary aluminum and 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 48,000 people and has operating facilities in 38
countries.
    Statements made in this information which describe the Company's
intentions, expectations or predictions may be forward-looking statements
within the meaning of securities laws. The Company cautions that, by their
nature, forward-looking statements involve risk and uncertainty and that the
Company's results could differ materially from those expressed or implied in
such statements. Reference should be made to the most recent Form 10-Q for a
summary of major risk factors.

Media Contacts:

Charles Belbin
Alcan Automotive
Phone: +01.248.489.5615
E-mail: charles.belbin@alcan.com

Larry Weis
AutoCom Associates
Phone: +01.248.647.8621
E-mail: lweis@usautocom.com