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Packaging News - January 17, 2005 - Jobwerx News - Alcan, Inc. plans on investing US$55 million in the Russian packaging market. They plan to build and equip two new plants located in the Moscow and St. Petersburg regions. The Moscow site will focus on flexible packaging for the confectionery and dairy markets and the St. Petersburg site will be dedicated to tobacco packaging.

The Moscow confectionery and dairy food facility represents an initial investment of approximately $25 million for the construction of the facility and equipment to support print, lamination and die-cut capabilities. The tobacco packaging site is mainly focused on carton production, and will require an initial investment of approximately $30 million.

Alcan Packaging has established a leading position in the Russian rotogravure food flexibles market, as in the corrugated market, corrugated containers and cardboard boxes. They intend to achieve the same in tobacco packaging.

This project as a local manufacturing presence in both regions will better serve customer needs and deliver a full range of high quality products.

Production is to start before the end of April 2006 at both facilities. Plans are for more than 100 people to be employed in the food flexibles plant and 120 in the tobacco packaging operation.

Alcan Inc. announced last week, that it expects earnings per share for the fourth quarter of 2004 to be lower than those reported in the third quarter. Compared to the third quarter the Company expects operating earnings per share to decline by approximately 30%, reflecting the negative impact of normal seasonal effects in addition to the falling US dollar and higher fuel and energy-related costs.

Results for the fourth quarter will be released on February 8, 2005, followed by a conference call.

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