Alcan to Sell Interest in Plan

Canadian aluminum producer Alcan Inc. said Thursday it has agreed to sell its Vlissingen smelter in the Netherlands to Klesch & Co. for an undisclosed sum.. Alcan owns 85 percent of the smelter and Hunter Douglas, which holds the remaining 15 percent stake, also plans to sell its interest to the private equity firm, Alcan said.The final agreement is expected to be completed after the conclusion of the consultation process with employee representatives. The deal is expected to close this summer. The proposed sale comes on the heels of Alcan's rejection of a $27.4 billion hostile cash-and-stock takeover bid from U.S. rival Alcoa Inc.

Alcan said last week it would consider a sweetened buyout offer from Alcoa, or may try to acquire Alcoa instead. Alcan has also said it is in talks with unidentified third parties. The proposed sale of the smelter would include an agreement that would ensure ongoing billet and sheet ingot supply to Alcan's engineered product plants, along with Hunter Douglas and third party customers.

The plant, which mainly makes aluminum billet for the European engineered products market, employs about 700 workers and has a smelting production capacity of 200,000 tons, with a turnover of about $600 million in 2006. Alcan shares fell 40 cents to $86.60 in morning trading.

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