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MEI Online: Plant Operation News: North America: March 6th 2003


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:: Alcoa to Invest over $1 Billion to Expand Its Deschambault Aluminum Plant and Create 1,500 Jobs

Quebec Premier Bernard Landry and Alcoa Chairman and CEO Alain Belda have signed a memorandum of understanding (MOU) for expanding Alcoa's aluminum plant in Deschambault. This MOU, which is the result of negotiations that began in the fall of 2001, will allow the plant to increase its annual production capacity from 250,000 to 570,000 metric tons.

The expansion will entail investments of more than $1 billion (Canadian) and the creation of 6,500 direct and indirect jobs for the length of the construction period. For its part, Alcoa agrees to create a minimum of 1,250 jobs, most of which will be in the Quebec aluminum processing industry and more than 250 jobs for the expansion of the Deschambault plant. It will be assessed heavy penalties if it cannot meet this commitment.

When the expansion of Alcoa's Deschambault and Baie-Comeau aluminum plants has been completed, the combined capacity of the company's three plants in Quebec will be 1,400,000 metric tons a year. As a result, Alcoa's Quebec plants will be among the leading aluminum producers in the world.




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