Will Alcan close some European smelters as energy costs soar?

The statement according to which Alcan would be forced to close 20% of its smelting capacity in Europe owing to high energy prices and the strength of the euro was misunderstood. The company expected that three out of its nine European smelters, representing 20% of its European capacity of one million metric tonnes a year, might be closed or would change function when their energy contracts came to an end. It is a fact that the strength of the euro increased Alcan's European costs by 30% in local terms and despite higher aluminium prices, the euro and energy costs are putting pressure on France and Germany and forcing delocalisation. But Alcan restated that the present situation can last for several years and that the future European energy context cannot yet be predicted. (AFP - 04/18/05; ENALPanel)