Alcan
Encyclopedia
Rio Tinto Alcan Inc. is a Canadian company based in Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...

. It was created on November 15, 2007 as the result of the merger between Rio Tinto PLC's
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...

 Canadian subsidiary, Rio Tinto Canada Holding Inc., and Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 company Alcan
Alcan
Rio Tinto Alcan Inc. is a Canadian company based in Montreal. It was created on November 15, 2007 as the result of the merger between Rio Tinto PLC's Canadian subsidiary, Rio Tinto Canada Holding Inc., and Canadian company Alcan Inc. On the same date, Alcan Inc. was renamed Rio Tinto Alcan Inc..Rio...

 Inc. On the same date, Alcan Inc. was renamed Rio Tinto Alcan Inc..

Rio Tinto Alcan Inc. is the global leader of aluminium mining and production, above its one time parent Alcoa
Alcoa
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries...

 (from which it split in 1928), Rusal
United Company RUSAL
United Company RUSAL is the world's largest aluminium company, with headquarters in Moscow, Russian Federation. UC RUSAL accounts for almost 11% of the world's primary aluminium output and 13% of the world’s alumina production. The United Company was formed by the merger of RUSAL , SUAL, and the...

 and some Chinese public companies.

History

Founded in 1902 as the Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 unit of Alcoa
Alcoa
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries...

, it was spun off
Spin out
A spin-out, also known as a spin-off or a starburst, refers to a type of corporate action where a company "splits off" sections of itself as a separate business....

 in 1928.

Alcan has gone through several name changes:
  • Northern Aluminum Company Limited - 1902
  • Aluminum Company of Canada Limited - 1925
  • registers the name Alcan - 1945
  • added French name Aluminium du Canada, Limitée - 1965
  • introduce the use of the name Alcan Aluminium Limited in English and Alcan Aluminium Limitée 1966; later used as the official name of the parent company in 1987
  • Alcan Inc. - 2001
  • Rio Tinto Alcan Inc. - 2008 (current company name)


In 2008 Alcan Inc was amalgamated with Rio Tinto Canada Holding Inc following Rio Tinto Canada Holding Inc's acquisition of a majority of the share capital in Alcan Inc. Following the acquisition which was carried out by way of amalgamation Rio Tinto Canada Holding Inc was renamed Rio Tinto Alcan Inc.

From 1935 to 1945, the use of Aluminum in Alcan's name was being disputed by Alcoa
Alcoa
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries...

, but a decision by the United States Circuit Court of Appeals ended the legality of the company's name.

Historically, Alcan was one of Canada's most important and powerful companies, and was listed as the sixth "largest" in 1975.

In 1982 the company acquired the British Aluminium Company, renaming the operation British Alcan
British Aluminium
The aluminium producer British Aluminium Ltd was originally formed as the British Aluminium Company Ltd on 7 May 1894 and was subsequently known as British Alcan Aluminium Plc...

. In 1999, Alcan made a failed attempt to make a three-way merger
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...

 between it and Algroup (Alusuisse Lonza Group) of Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

 and Pechiney
Pechiney
Pechiney SA was a major aluminium conglomerate based in France. The company was acquired in 2003 by the Alcan Corporation, headquartered in Canada...

 of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

. The proposed merger was blocked by the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 due to fears of anti-competition. After the deal fell through, Alcan acquired Algroup in 2000. Then in 2003, Alcan acquired Pechiney, completing the original three-way merger plan of 1999.

In July 2007, Hindalco Industries
Hindalco Industries
Hindalco Industries Ltd. is one of the world's largest Aluminium manufacturing company and is a subsidiary of the Aditya Birla Group. It is run by one of the world's youngest billionaires, Mr. K.M. Birla.-Financial information:...

 announced it is buying the stake of Alcan in the Utkal Alumina Project in Orissa, India marking an exit of Alcan from the project.

On January 20, 2009 Rio Tinto Alcan announced plans to close the Beauharnois smelter and reduce output from the Vaudreuil refinery; both facilities are in Quebec. It is part of a larger plan to reduce aluminum output by a further 6% (following a cut of 5% in late 2008), while cutting 1,100 jobs worldwide. The company will also sell its half-interest in the Chinese Alcan Ningxia joint venture.

Rio Tinto sold assets from Alcan, including Alcan Packaging, in 2009, and Alcan Engineered Products in 2011. Alcan Packaging was acquired by Australian packaging giant Amcor
Amcor
Amcor Limited is an Australian-based multinational packaging company. Its headquarters are in Hawthorn, Victoria ; and it is listed on the Australian Securities Exchange....

.

Bauxite and alumina

Alcan owns, operates or has an interest in six bauxite mines and deposits, five smelter-grade alumina refineries and six specialty aluminas plants. Its Bauxite & Alumina group refines bauxite ore into smelter-grade alumina for Alcan’s Primary Metal group and external customers and specialty-grade alumina for third parties. It also owns an extensive transportation network, including trucking, rail, marine shipping and port facilities worldwide.

Primary metal

Alcan Primary Metal group includes Alcan’s aluminum smelting facilities and power generation installations, smelting technology and equipment sales, engineering services and aluminum trading operations, anode and cathode production facilities and aluminum fluoride plants.

Alcan owns or has an interest in 22 smelters in 11 countries and regions.
Alcan smelters
Location Annual Capacity (kt) Ownership (%)
Boyne Smelters Limited
Boyne Island aluminium smelter
The Boyne Island Aluminium Smelter is located on Boyne Island,Queensland, Australia, approximately 20 km south of the port of Gladstone.The smelter has a production capacity of 545,000 tonnes of aluminium per year...

, Queensland
Queensland
Queensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 
556 59.39
Bell Bay
Bell Bay aluminium smelter
The Bell Bay aluminium smelter is located on the Tamar River at Bell Bay, Tasmania, Australia. The smelter has a production capacity of 178,000 tonnes of aluminium per year.It is owned and operated by Rio Tinto Alcan.-History:...

, Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 
177 100
Tomago
Tomago aluminium smelter
The Tomago aluminium smelter is located at Tomago, New South Wales, Australia, approximately 13 km West of Newcastle. It is a major industrial site in the Port Stephens LGA. The smelter has a production capacity of 520,000 tonnes of aluminium per year...

, NSW
New South Wales
New South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 
520 51.5
Tiwai Point
Tiwai Point
thumb|[[Awarua Plain]] , Tiwai Point and [[Bluff, New Zealand|Bluff]] viewed from the [[International Space Station]] in 2008.Tiwai Point lies at the entrance to Bluff Harbour on the southern coast of the South Island of New Zealand...

, NZ
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

 
330 79.36
Edea, Cameroon (Alucam) 100 46.7
Alma, Quebec
Alma, Quebec
Alma is a town in the Canadian province of Quebec.-Geography:Alma is located on the southeast coast of Lac Saint-Jean where it flows into the Saguenay River, in the Saguenay–Lac-Saint-Jean region of Quebec, Canada, approximately 175 km north of Quebec City...

 
415 100
Arvida, Quebec
Arvida, Quebec
Arvida is a settlement of 12,000 people in Quebec, Canada, that is part of the City of Saguenay. Its name is derived from the name of its founder, Arthur Vining Davis, president of the Alcoa aluminum company ....

166 100
Beauharnois, Quebec
Beauharnois, Quebec
Beauharnois is a city located in the Beauharnois-Salaberry Regional County Municipality of southwestern Quebec, Canada and is part of Greater Montreal Area. The city's population as of the Canada 2006 Census was 11,918...

52 100
Becancour, Quebec
Bécancour, Quebec
Bécancour is a town in the Centre-du-Québec region of Québec, Canada; it is the seat of the Bécancour Regional County Municipality. It is located on the south shore of the Saint Lawrence River at the confluence of the Bécancour River, opposite Trois-Rivières.Wôlinak, an Abenaki Indian reserve, is...

404 25
Grande-Baie, Quebec 207 100
Kitimat, British Columbia
Kitimat, British Columbia
Kitimat is a coastal city in northwestern British Columbia, in the Regional District of Kitimat-Stikine. The Kitimat Valley, which includes the adjacent community of Terrace, is the most populous urban district in Northwest British Columbia...

277 100
Laterriere, Quebec
Laterrière, Quebec
Laterrière is a community in the Saguenay-Lac-Saint-Jean region of Quebec and a former municipality. It is part of the merged city of Saguenay, Quebec. Laterrière was founded by Jean-Baptiste Honoratin 1846....

228 100
Sept-Îles, Quebec (Alouette)
Aluminerie Alouette
Aluminerie Alouette is an aluminum manufacturing company based in Sept-Îles, Quebec, Canada, on the North Shore of the Gulf of St. Lawrence.With the successful start-up of a major expansion in 2005, the Alouette Aluminum Smelter, at 550,000 metric tonnes capacity per year, became the largest...

572 40
Shawinigan, Quebec
Shawinigan, Quebec
Shawinigan is a city located on the Saint-Maurice River in the Mauricie area in Quebec, Canada. It has a population of approximately 51,904 people ....

99 100
Qingtongxia, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

152 50
Dunkerque, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 
259 100
Lannemezan
Lannemezan
Lannemezan is a commune in the Hautes-Pyrénées department in south-western France.-Geography:The Petite Baïse has its source in the commune.Lannemezan is around 30 km east of Tarbes, and around 100 km south-west of Toulouse.-References:*...

, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 
50 100
Saint-Jean-de-Maurienne
Saint-Jean-de-Maurienne
Saint-Jean-de-Maurienne is a commune in the Savoie department in the Rhône-Alpes region in south-eastern France. It is a sub-prefecture of the department....

, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

135 100
Hafnarfjörður
Hafnarfjörður
Hafnarfjörður is a port town and municipality located on the south-west coast of Iceland, about 10 km south of Reykjavík....

, Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

 (ISAL)
179 100
Husnes
Husnes
Husnes is the largest urban area in Kvinnherad, Norway, with c. 2500 inhabitants as of 2010, and about 8000 in the local region. The village is centered around Sør-Norge Aluminium , and has become the center of commerce and education in Kvinnherad....

, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

  (SORAL)
164 50
Sohar
Sohar
Sohar is the most developed city in Sultanate of Oman outside the capital Muscat. It is about 200 kilometers north of Muscat. Sohar was an ancient capital of Oman and many believe it to be the birthplace of Sinbad the Sailor...

 (Muscat), Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...

 
360 20
Lochaber
Lochaber
District of Lochaber 1975 to 1996Highland council area shown as one of the council areas of ScotlandLochaber is one of the 16 ward management areas of the Highland Council of Scotland and one of eight former local government districts of the two-tier Highland region...

, Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...

, UK 
43 100
Lynemouth
Alcan Lynemouth Aluminium Smelter
The Alcan Lynemouth Aluminium Smelter is situated near Ashington, Northumberland, on the coast of North East England, south of the village of Lynemouth. The smelter is owned by Canadian aluminium company Alcan, which is part of Rio Tinto...

, UK
178 100
Sebree, Kentucky
Sebree, Kentucky
Sebree is a city in Webster County, Kentucky, United States. The population was 1,558 at the 2000 census. In 1868, a town was founded by William Scott and Colonel E. G. Sebree of Trenton, Kentucky. The L & N Railroad was begun in 1850 but was not completed until after the American Civil War...

, USA 
196 100


Alcan is based in Montreal, Quebec
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...

 and had revenues of US$23.6 billion and 68,000 employees in 61 countries in 2007.

Corporate governance

As of March 6, 2007, members of the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 of Alcan were: Roland Berger
Roland Berger
-References:...

, L. Denis Desautels
L. Denis Desautels
L. Denis Desautels, OC is a Canadian accountant, corporate director, and former Auditor General of Canada.Born in Saint-Bruno-de-Montarville, Quebec, Desautels received a Bachelor of Commerce degree from McGill University in 1964 and became a Chartered Accountant in 1966.In 1964, he joined the...

, Dick Evans, Yves Fortier, Jean-Paul Jacamon, William R. Loomis Jr., Yves Mansion, Christine Morin-Postel, H. Onno Ruding, Guy Saint-Pierre
Guy Saint-Pierre
Guy Saint-Pierre, , is a retired Canadian politician and businessman.-Background:Born in Windsor Mills, Quebec, he was the son of Armand Saint-Pierre and Alice Perra. Saint-Pierre graduated from Université Laval with a B.A.Sc. in Civil Engineering in 1957. He obtained an M.Sc. from the University...

, Gerhard Schulmeyer
Gerhard Schulmeyer
Gerhard Hans Schulmeyer is a German American businessman. From 1994 until 1998, he was president and Chief Executive Officer of Siemens Nixdorf in Germany, and between 1999 and December 2001, he was president and CEO of Siemens Corporation in the United States.Since January 2002 he has been...

, Paul M. Tellier
Paul Tellier
Paul Mathias Tellier, PC, CC is a Canadian businessman and former public servant. Born in Joliette, Quebec, Tellier was educated at Laval University and the University of Oxford.- Biography :Tellier entered Canada's civil service in the 1970s...

, and Milton K. Wong.

It should be noted this was the last board of directors of Alcan prior to its renaming and becoming a wholly owned subsidiary of Rio Tinto PLC. Rio Tinto added several Alcan directors to its corporate board in London, including Dick Evans, who is also Chief Executive of Rio Tinto Alcan now.

Takeover

Alcoa Inc. announced a hostile take over bid for its progeny on May 7, 2007, in a deal worth $27 billion USD. The combined companies would have formed the largest aluminum producer in the world. On May 22, 2007, Alcan's board of directors unanimously recommended that shareholders reject Alcoa’s unsolicited offer to acquire Alcan. The board determined that the offer was inadequate in multiple respects and was contrary to the best interests of Alcan’s shareholders. On July 12, 2007, Alcan announced a friendly takeover deal with Anglo
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...

-Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

n mining giant Rio Tinto
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...

, worth $38.1 billion USD. Alcan's board of directors unanimously recommended the deal to shareholders. Alcoa withdrew its bid later in the day. On October 25, 2007, the merger was completed and Rio Tinto Alcan (the amalgamation of Alcan and Rio Tinto Aluminum) became the world's largest aluminum company. However, while Rio Tinto won overwhelming shareholder support on October 25, 2007, the acquisition was not formally consummated until November 15, 2007, the date on which the corporate name changed and integration was finally completed.

See also

  • British Alcan
    British Aluminium
    The aluminium producer British Aluminium Ltd was originally formed as the British Aluminium Company Ltd on 7 May 1894 and was subsequently known as British Alcan Aluminium Plc...

  • List of alumina refineries
  • List of aluminium smelters
  • Aluminium smelting
    Aluminium smelting
    Aluminium smelting is the process of extracting aluminium from its oxide alumina, generally by the Hall-Héroult process. Alumina is extracted from the ore Bauxite by means of the Bayer process at an alumina refinery....

  • Kemano, British Columbia
    Kemano, British Columbia
    Kemano is a settlement situated 75 km southeast of Kitimat in the province of British Columbia in Canada. It was built to service a hydroelectric power station, built to provide energy for Alcan to smelt aluminium from its ore. The powerhouse is built 427 m inside the base of Mt Dubose...

    , Canada
  • Nechako Reservoir
    Nechako Reservoir
    The Nechako Reservoir, sometimes called the Ootsa Lake Reservoir, is a hydroelectric reservoir in British Columbia, Canada that was formed by a diversion of the Nechako River through the Kitimat Ranges of the Coast Mountains to sea level at Kemano to provide power for the aluminum smelter at Kitimat...


External links

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