Alumax Completes Joint Venture Agreement In China.

NORCROSS, Ga.--(BUSINESS WIRE)--April 2, 1996--Alumax International Company and Yunnan Aluminum Processing Factory in Kunming, China, announced today that they completed an agreement on a $70 million joint venture for the production of 8,000 to 10,000 metric tons of light-gauge aluminum foil per year in the Yunnan province.

Allen Born, chairman and chief executive officer of Alumax Inc., said:

"This joint venture in China is a major step forward in our strategy to achieve growth by partnering with others in promising regions of the world. It is the first completed investment of those being considered by Alumax in the emerging markets of China, Mexico and Poland."

The agreement brings to fruition negotiations originally announced by Alumax on August 8, 1995.

Alumax will have a controlling interest in the venture which is to be called Yunnan Xinmeilu Aluminum Foil Co., Ltd. The venture comprises an existing common alloy sheet plant with an asset value of about $30 million and from Alumax, approximately $40 million in cash and the necessary technology and expertise to develop a continuous cast foil operation.

The plant, to be under the direction of Richard L. Curtis, manager of rolled and foil products, Alumax International Company, will produce converter foil seven microns thin for China's packaging market.

Alumax's affiliate, Alumax Foils, Inc. of St. Louis, Missouri, will provide management support and technical assistance to the operation. Alumax Foils is the oldest metal foil manufacturer in the United States with continuous operations since 1889.

Philippe Thaure, president of Alumax International, said:

"This has been a challenging and gratifying experience, developing the venture with Yunnan Aluminum. The spirit of cooperation and pragmatic exchange of ideas has provided the groundwork for a mutually beneficial and productive long-term relationship."

Alumax International is a wholly-owned subsidiary of Alumax Inc., a world leader in aluminum with year-end 1995 assets of more than $3.1 billion and 1995 revenues of more than $2.9 billion.

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, packaging, and consumer durables industries.

Alumax employs 15,500 people in more than 100 plants and facilities in the United States, Canada and Western Europe.

Yunnan Aluminum Processing Factory of Kunming, Yunnan, China, is a five-year-old joint venture of the Yunnan Metallurgical Group and the Yunnan Tobacco Group.

CONTACT: Alumax

Thomas R. Hagley (Media)

770/246-6642 Fax: [phone]

R. Daniel Loh (Investors)

770/246-6752 Fax: [phone]