ALUMAX TO BUILD $31 MILLION FOIL ROLLING FACILITY IN ARKANSAS.
Chairman and Chief Executive Officer Allen Born said:
"We are pleased to site a fourth facility in Arkansas. Economic development is serious business and the assertive way in which it has been approached is a special credit to Governor Jim Guy Tucker and his staff, to the Arkansas Industrial Development Commission and to the Chamber of Commerce and residents of Russellville."
The new facility will be operated by Alumax Foils, Inc., a wholly-owned subsidiary of Alumax Inc. Its construction, on a 60-acre site in the West Central Region of Arkansas, is scheduled to begin this spring. "We expect the plant to be fully operational in the first quarter of 1997," said Thomas Cleary, Alumax Foils president.
Cleary said that for its initial operation, the new facility will employ 50 to 60 people. "It will have two rolling mills, various annealing ovens and ancillary equipment for producing light-gauge converter foil."
Alumax Foils, based in St. Louis, Missouri, produces foil products principally for use in the flexible packaging, food service and industrial segments of the industry. The St. Louis plant is an integrated operation with continuous casting capabilities, modern high-speed rolling mills and various finishing equipment.
Cleary said the new operation will complement and add to the capacity of the company's foil plant in St. Louis. "Output from Arkansas," Cleary said, "will be primarily focused on the wide, light-gauge flexible packaging market.
"Alumax participates in this market segment largely by selling to `converters' of light gauge foil, who process this material into product packaging used mainly in the food, beverage and pharmaceutical industries," Cleary explained.
He said that Alumax Foils has become a recognized leader in this market segment based on quality, gauge control and customer service.
Alumax has manufacturing facilities in Magnolia, Springdale, and Helena, Arkansas. The company, headquartered in Norcross, Georgia, employs 14,000 people in more than 100 plants and facilities in the United States, Canada, and Western Europe.
The company produces and markets primary aluminum ingot, billet and slab and is a major fabricator of value-added aluminum products for the building and construction, transportation, containers and packaging, and consumer durable industries. Alumax has assets of approximately $2.9 billion and annual revenues of $2.7 billion.
CONTACT: Alumax Inc., Norcross
Thomas Hagley, 404/246-6642 (media)
R. Daniel Loh, 404/246-6752 (investors)