Soe ade ce ov. _ Expansion makes Alcan - _ mare stable, competitive - by Tod Strachan lucrative value-added aluminum market. Since the first Kitimat ingot was poured by Prince Phillip on Aug. 3, 1954, the plant had turned out countless tons of remelt aluminum ingots in meeting a significant percentage of the world’s aluminum demand. But there was a problem: Remelt _ ingots are just what the name implies: a basic aluminum product which other plants. buy, remelt, adding a few metallic and non-metallic elements, and recast into much more valuable aluminum alloys. This, in reality, put Alcan at the low end of the manufacturing chain. They. were turning out a product that, in the words of Kiti- mat’s Ingot Product Division en- gineering superintendent, John Williams, "Anyone can make." _ And as a result, the competition was stiff; Ingot sales, and Alcan jobs, fluctuated at the whim of world demands. So it was around 1970 when Alcan’s Kitimat Works began producing value-added aluminum alloys. It was a simple formula. ‘.. . There was less competition in the” _ About 20 years BRO, Alcan, was " just beginning to explore the very. value-added market and the cost of the required plant upgrade would soon be paid through sales. of a. “more valuable product. At the ‘same time, producing aluminum alloys would place Alcan in a ‘more stable part of the manufactur- ing chain and offer greater security to both the company and plant employees, According to Kitimat works public relations manager Allan _ Hewitson, Alcan has aggressively marketed their value-added pro- ducts in the past.10 years and have added to a growing number of customers, particularly in the Pacific Rim countries of Japan, China, Hong Kong and Malaysia. But again, there was a problem. Growth ‘in the production of aluminum alloys at the Kitimat smelter soon ground to a halt. Once the ratio of their value-added aluminum production had climbed to 40 percent of their total produc- tion capacity, they had reached the maximum capability of the plant. Alcan’s Kitimat Works is designed to produce 268,000 tonnes of aluminum per year. They most often exceed that figure, however. In 1988 they produced 274,707 . tonnes of ingot and in 1989 another 272,331 tonnes of ingot were turned out. They produced 108,932 tonnes of alloyed, or value-added aluminum in 1989. It wasn’t enough, though. They could easily sell more than twice that amount of alloyed aluminum and they had to find a way to produce more, So in the early part of 1988 Alcan went to Bechtel Canada with a vision and in October, 1988, the DC4 casting plant project began. The term "DC" came from "direct chill", the type of process Alcan would use in casting aluminum alloys, and the "4" indicated that it would be the fourth casting plant of its type at Alcan’s Kitimat Works. This was an exciting project for Alcan. It was predicted that by the end of 1990 the DC4 plant would be in full production and the ratio of their alloyed aluminum production would soar from 40 to 90 percent of their total production. Hewitson says the new operation won't increase total production or staffing levels, but it will mean more job. security for Alcan’s 2,000 employees, a good thing for Kitimat and the Northwest. WORKSHOP — “STRESS MANAGEMENT” im Coping with stress in today’s environment Is an Important part of managing your : my business. Take advantage of this workshop learning to recognize signs of organiza-f g tional stress and how to deal with it. Wednesday, October 24, 1990 TO REGISTER: Inn of the West Time: 6:30 - 9:30 p.m. Cost: $40.00 Please call DANIELLE in Terrace — 635-4951 - or Toll Free — - 1-800-663-5035 “BUSINESS OPPORTUNITIES AT YOUR DOORSTEP” OPEN HOUSE TERRACE ' Monday, October 22, FBDB BRANCH OFFICE 4641 Lazelle Avenue 4:00 - 6:00 p.m. Please Register at Chamber Office THE CANADIAN CHAMBER OF COMMERCE . Federal Business Development Bank de développement 1990 Banque fédérale Canad ...Presented by... Ministry of Regional & Economic Development - TERRACE ‘Saturday, October 27, 1990 - Business Opportunities at your Doorstep Northwest Community College . Time: 8:00 a.m. - 5:30 p.m. Cost: $40.00 fod Regional and Economie Development mh .: abi eee Sa els Alcan’s new DC4 casting plant will make the smetter’s line of products 90 percent alloyed. Doorstep” “ Business Opportunities at your ,, Alcan predicts short-term market drop | In its third quarter report Alcan Aluminum is optimistic about the North American economic outlook for the long term but is expecting slow markets for the first half of 1991. David Morton, chief executive officer for the company, commented, "earnings in the third quarter benefited from higher volumes and prices in sales of our primary ingot. While this is satisfactory, the economic putlook for the next six to nine months is less. encouraging, particularly in North America. However, the industry fundamentals remain sound in the longer term." Alcan reported a consolidated net income of $97 million US in the third quarter, compared to $180 million for the same quarter of 1989. CONFERENCE * For those interested in starting or expanding a small business. Saturday, October 27, 1990 8:45 a.m. to 5:30 p.m. at the Northwest Community College Terrace, B.C. Hear successful entrepreneurs share their success stories and identify local business opportunities. SEMINAR TOPICS Identifying Business Opportunities Innovative Marketing Servicing Large Corporations and Government Tourist Attractions The Franchise Way to Get Into Business Small-Scale Manufacturing Presented by: Honourable Stanley B. Hagen Minister of Regional and Economic Development — In Cooperation with: Honourable Dave Parker MLA - Skeena For more information or to register:, | Terrace & District Chamber of Commerce — 3250 Eby Street P.O. Box 107 Terrace, B.C, V8G 4A2 Phone: 635-2063 MINETRY OF REGIONAL AND ECONOMIC DEVELOPMENT Honourable Staniey B. Hagen, Minisigr