ALUSUISSE-LONZA AND ALCOA SIGN AGREEMENT TO DEVELOP ALUMINUM SHEET AND PLATE ROLLING VENTURE
ALUSUISSE-LONZA AND ALCOA SIGN AGREEMENT TO DEVELOP
ALUMINUM SHEET AND PLATE ROLLING VENTURE
ZURICH, Switzerland, Nov. 13, /PRNewswire/ -- Alusuisse-Lonza Holding Ltd., (A-L), Zurich, and Aluminum Company of America (Alcoa) (NYSE: AA), Pittsburgh, have signed a memorandum of understanding to cooperate in the aluminum rolling facilities of A-L's Alusuisse Swiss Aluminium Ltd. subsidiary located at Sierre in the Swiss Canton of Valais.
The companies said the goal of the proposed project is to expand the partners' position in aluminum flat-rolled products in the European automotive, industrial and aerospace markets. Alusuisse and Alcoa have complementary capabilities in these market sectors, which are forecast to have high growth rates during the current decade.
The understanding calls for the companies to form a joint venture that includes the Sierre rolling facilities and the Alusuisse smelter and ingot casting facilities at Steg, also in Valais, that supplies the mill with primary aluminum ingot. Alcoa would have a 60 percent stake in the venture.
The joint venture will invest Sfr 300 million (approximately $210 million) in a major modernization and expansion program over the next few years to incorporate rolling technology that will increase production capacity and product quality to better meet the needs of customers.
Alusuisse-Lonza will continue to own the Sierre extrusion plant and the company's holdings in the Valais power plants.
The companies said detailed negotiations on the structure of the joint venture and the investment program will begin immediately. A final agreement is expected to be signed in several months. The companies also said they will begin to discuss opportunities in other markets of mutual interest.
/EDITORS: This news release was simultaneously released in Zurich by Alusuisse-Lonza./
/CONTACT: Fritz Schiltknecht or Alusuisse-Lonza Holding Ltd., in Zurich, 41-1-386-2585, or John F. McMahon of Alcoa, in Pittsburgh, 412-553-3704/
(AA) CO: Aluminum Company of America; Alusuisse-Lonza Holding Ltd. ST: Switzerland IN: MNG SU: JVN CD -- PG002 -- 3836 11/13/91 10:09 EST