Montreal, Canada ? As of January 15, 2001, Alcan Aluminium Limited will reduce aluminum production at its Kitimat smelter by 50,000 tonnes per year for a period of at least 10 months. Alcan must take this action to conserve water in the Nechako Reservoir to protect the power supply to the rest of the smelter over the winter months.
The current, acute shortage of water in the Nechako Reservoir in north central B.C. is the result of three consecutive years of low inflows into the reservoir. In early September, Alcan suspended power deliveries to its two customers, B.C. Hydro and Eurocan Pulp and Paper in response to these unusual circumstances. Since that time, Alcan and B.C. Hydro have been discussing power supply options but have been unable to find a solution that would keep the Kitimat smelter operating at full capacity.
By shutting down one production line in mid-January and taking other steps to reduce energy use at the Kitimat smelter, Alcan believes it will be able to conserve sufficient power to keep the remaining six lines operating and fulfill its obligation to B.C. Hydro during the critical winter months. Normally, the spring thaw begins to recharge the reservoir in late April or early May. Alcan can only restore full production if conditions in the spring of 2001 are closer to the historical pattern.
Alcan produces 272,000 tonnes of aluminum a year in B.C., employing about 1,800 people. The company is committed to working with the unions and appropriate B.C. government agencies to minimize impacts on employees and the community during the period of reduced production.
Statements made in this press release 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.
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Contact:
Kathleen Bourchier
+1 (604) 257-1406
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Michael Hanley
+1 (514) 848-8368
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