Alcan Automotive Creates JV To Capture Growth In China

Alcan Engineered & Automotive Solutions (EAS; Paris, France), part of Alcan Engineered Products (Montreal, Quebec), signed an agreement with Changchun Engley Automobile Parts Co. Ltd. (Changchun, Taiwan) to create a joint venture.

The JV company will be based in the northeastern Chinese city of Changchun with a second manufacturing plant located in Kunshan, close to Shanghai, to serve several OEMs in both the northern and southern regions of China.

Alcan Engley Automotive Structures Co. Ltd. will develop and produce crash management systems, instrument panel beams in aluminium and other structural aluminium modules. Alcan Automotive will be the majority shareholder and expects to start supplying products in late 2009.

"Alcan's advanced aluminium lightweight solutions play a significant role in today's fuel-efficient cars all over the world including China," said Wolfgang Schmitz, president of EAS. "China is posting double digit growth in car sales and will continue to offer exceptional growth opportunities for our engineered products in the coming years."

"EAS is a strong partner with outstanding lightweight expertise that nicely complements our broad product offering of steel, aluminium and plastic components," said Lin Chi-Pin, chairman and owner of Engley. "So I'm very pleased that the JV will further reinforce our successful partnership which began in 2002."

Through several project acquisitions in recent years, Alcan EAS has become a preferred supplier of advanced lightweight solutions in Europe and North America. Incorporating the partnership with Engley is the next logical step to grow EAS's footprint and support the development of aluminum systems for the Chinese and Asian markets.

These systems provide substantial benefits in weight reduction, safety and structural stiffness, enhancing total pedestrian and vehicle safety while also lowering emissions and improving fuel economy. The Alcan Engley JV sees a strong demand for its products, which help its customers develop the next generation of greener, more fuel-efficient cars in China and Asia.

"We are excited about the joint venture with Engley," said Laurent Castor, general manager of Automotive Structures. "It combines our technological expertise and their market position in a partnership that benefits both businesses. We will now be in an excellent position to serve our global customers locally."

Alcan Engineered & Automotive Solutions offers its customers design, engineering, testing, and production of structural, safety, and suspension and engine components or modules at its locations in Europe, North America, and Asia. Its lightweight aluminium elements can be successfully incorporated into any vehicle assembly and provide substantial benefits in weight reduction, safety, and structural stiffness to enhance total pedestrian and vehicle safety in addition to contributing to lower emissions and improved fuel economy.

Alcan Engineered Products is a global sector-leading business strongly committed to developing innovative, value-added products for aerospace, non-commodity aluminium rolled products, aluminium extrusions, cable, composite products, automotive systems and international trade.

Changchun Engley Auto. Parts Co., Ltd., a Taiwan-owned enterprise, is headquartered in Changchun City, Jilin Province of China. In both Suzhou and Changchun, Engley has a strong production base for auto parts and mold manufacturing. Engley is not only a supplier of steel and aluminium crash management and body-in-white modules, but is also the largest Chinese supplier of long glass fibre thermoplastic parts, specialising in GMT, LFT-D compression and LFT injection parts such as underbody shields, frontends, doors, spare wheel and, among others, pans.

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