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Alcan

Overview

Rio Tinto Alcan Inc. became the world's largest Aluminium

Aluminium

Aluminium or aluminum is a silvery white and ductile member of the boron group of chemical elements. It has the symbol Al; its atomic number is 13. It is not soluble in water under normal circumstances....

company

Corporation

A corporation is a legal entity separate from the shareholders and employees. In British tradition it is the term designating a body corporate, where it can be either a corporation sole or a corporation aggregate...

when Rio Tinto PLC's

Rio Tinto Group

The Rio Tinto Group is a diversified, multinational mining and resources group with headquarters in London, England and Melbourne, Australia. 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., completed a friendly acquisition of Canadian company Alcan Inc. on November 15, 2007. On this date, Alcan Inc. was renamed Rio Tinto Alcan Inc..

Alcan Inc., at the time of the takeover, had been the world's third largest aluminium producer, behind its one time parent Alcoa

Alcoa

the river: Alcoa RiverAlcoa, 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 44 countries...

(from which it split in 1928) and Rusal

United Company RUSAL

United Company RUSAL is the world's largest aluminium company. United Company RUSAL accounts for almost 12.5% of entire global output of primary aluminium and 16% of the world’s alumina production. The United Company is a result of the merger of RUSAL , SUAL, and the alumina assets of Glencore,...

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Encyclopedia

Rio Tinto Alcan Inc. became the world's largest Aluminium

Aluminium

company

Corporation

when Rio Tinto PLC's

Rio Tinto Group

Alcoa

(from which it split in 1928) and Rusal

United Company RUSAL

. The 2007 deal that created Rio Tinto Alcan Inc. followed a failed hostile takeover bid for Alcan by Alcoa.

History

Founded in 1902 as the Canadian

Canada

Canada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean...

unit of Alcoa

Alcoa

, it was spun off

Spin-off

A spin-off is a new organization or entity formed by a split from a larger one, such as television series based on a pre-existing one, or a new company formed from a university research group or business incubator...

in 1928.

Alcan has gone over 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. - 2007 (current company name)

From 1935 to 1945, the use of Aluminum in Alcan's name was being disputed by Alcoa

Alcoa

, 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

The phrase mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another...

between it and Algroup (Alusuisse Lonza Group) of Switzerland

Switzerland

Switzerland , officially the Swiss Confederation , is a federal republic consisting of 26 states named cantons, with Bern as the seat of the federal authorities...

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

France , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...

. The proposed merger was blocked by the European Commission

European Commission

The European Commission acts as an executive 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.The Commission operates in the method of cabinet government, with 27...

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 is India'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.

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 (%)
Tomago Tomago aluminium smelter The Tomago aluminium smelter is located atTomago, New South Wales, Australia, approximately 13 km West of Newcastle. It is a major industrial site in the Port Stephens LGA... , NSW New South Wales New South Wales is Australia's most populous state, located in the south-east of the country, north of Victoria, south of Queensland and east of South Australia... , Australia Australia Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the continental mainland , the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans...	520	51.5
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 was founded as an industrial city by Alcan in 1927, when the first aluminum smelter was constructed...	166	100
Beauharnois, Quebec Beauharnois, Quebec Beauharnois is a city located in the Beauharnois-Salaberry Regional County Municipality of southwestern Quebec, Canada. 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 Quebec, Canada; it is the seat of the Bécancour Regional County Municipality. It is located at the confluence of the Bécancour River and the Saint Lawrence River, opposite Trois-Rivières, Quebec....	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	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 Qingtongxia Qingtongxia is a city in the province of Ningxia in the north of China. Administratively, Qingtongxia is a county-level city within the prefecture-level city of Wuzhong. It is located on the left bank of the Yellow River, opposite and a bit upstream of Wuzhong main urban area.Qingtongxia has... , China China China is a cultural region, an ancient civilization, and, depending on perspective, a national or multinational entity extending over a large area in East Asia....	152	50
Dunkerque, France France France , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...	259	100
Lannemezan Lannemezan Lannemezan is a commune in the Hautes-Pyrénées department in south-western France.-References:*... , France France France , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...	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 France , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...	135	100
Hafnarfjörður Hafnarfjörður Hafnarfjörður or Hafnarfjordur is a port town located on the south-west coast of Iceland, about 10 km south of Reykjavík. It is the third most populous city in Iceland, after Reykjavík and Kópavogur, with a population of 26,003... , Iceland Iceland The Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population... (ISAL)	179	100
Vlissingen, Netherlands Netherlands The Netherlands is a country in Northwestern Europe, constituting the major portion of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east...	213	85
Husnes Husnes Husnes is the largest village in Kvinnherad, Norway, with 2212 inhabitants as of 2006, 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 country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty... (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 and about 200 kilometers south of Dubai. Sohar was an ancient capital of Oman and many believe it to be the birthplace of Sindbad the Sailor... (Muscat), Oman Oman Oman , officially the Sultanate of Oman , is an Arab country in southwest Asia on the southeast coast of the Arabian Peninsula. It borders the United Arab Emirates on the northwest, Saudi Arabia on the west and Yemen on the southwest....	N/A	20
Lochaber Lochaber Lochaber 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 on the coast of North East England, south of the village of Lynemouth in Northumberland. The smelter is owned by Canadian aluminium company Alcan, who are now officially known as Rio Tinto Alcan... , 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. The city is named for Colonel E. G. Sebree, who founded it in 1868.-Geography:Sebree is located at .... , USA	196	100
Tiwai Point Tiwai Point Tiwai Point lies at the entrance to Bluff Harbour on the southern coast of the South Island of New Zealand. A spit which extends from the western end of the Awarua Plain, it lies between Awarua Bay to the north and Foveaux Strait to the south... , NZ New Zealand New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses , and numerous smaller islands, most notably Stewart Island/Rakiura and the Chatham Islands. The indigenous Māori named New Zealand Aotearoa, commonly translated as The Land of the Long White Cloud...	330	79.36

Alcan is based in Montreal, Quebec

Montreal

Montreal is the second-largest city in Canada and the largest city in the province of Quebec. Originally called Ville-Marie , the city takes its present name from Mont-Royal, the triple-peaked hill located in the heart of the city, whose name was also initially given to the island on which the...

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. The body sometimes has a different name, such as board of trustees, board of governors, board of managers, or executive board...

of Alcan were: Roland Berger

Roland Berger

Roland Berger is a German entrepreneur, consultant and philanthropist. He is the founder and Chairman of the Supervisory Board of the international strategy consulting firm Roland Berger Strategy Consultants which he established in Munich, Germany, in 1967. He has been a close advisor...

, 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, CC, GOQ , 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...

, 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 businessperson. Born in Joliette, Quebec, Tellier was educated at Université Laval and University of Oxford.- Biography :Mr 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 7th, 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 and the North Sea to the east, with 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 continental mainland , the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans...

n mining giant Rio Tinto

Rio Tinto Group

, 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. Rio Tinto Alcan is based in Montreal and retains Alcan's CEO, Dick Evans. 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 changes and integration were finally completed.

Alcan

History

Bauxite and alumina

Primary metal

Corporate governance

Takeover

See also

External links