PARIS — Aluminum company Alcan Inc. (TSX:AL) says it's in “advanced discussions” with GrafTech International Ltd to acquire the remaining 70 per cent stake in France's Carbone Savoie for $130-million (U.S.) to $140-million.
With revenue of about $114-million in 2005, Carbone Savoie is a leading producer of cathode blocks, as well as sidewall blocks and ramming paste. Cathodes are essential in the production of aluminum, acting as conductors in the electrolysis process.
GrafTech's cathode business employs about 500 people at two sites, both near Montreal-based Alcan's European primary metal headquarters and research-and-development centre in Voreppe, France.
Alcan said Thursday the proposed transaction will be submitted to the Works Council consultation process in France and is expected to be completed in the fourth quarter after regulatory approval.
"This investment will strengthen Alcan's AP Series smelting technology platform and help to accelerate the development of potential breakthrough technologies," said Cynthia Carroll, CEO of Alcan's primary metal group.
"It will also secure Alcan's supply of cathode products for our current operations and extensive new project pipeline."
Alcan has operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions, as well as flexible and specialty packaging. It has 65,000 employees in 61 countries and regions, and posted revenues of $20.3-billion in 2005.
Its shares gained $1.04 to close at $49.34 (Canadian) on the Toronto Stock Exchange.
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