Alcoa and Sapa Replace Extrusion Aluminum Production Capacity with Extrusion Assets

Alcoa said that it has reached an agreement with Orkla, the parent company of SAPA, and Alcoa will use its 45% stake in Sapa's joint venture extrusion business with Orkla in Elkem Aluminum. The company owns 50% of the shares for replacement.

The replacement work plan was completed in the first quarter of 2009, after which Elkem will be a wholly owned aluminum plant of Alcoa. The replacement assets also included Alken and Alcoa's newly established anode plant in Mosjoen, Norway. Alcoa currently holds 82% of its shares. Elkem has two aluminum plants in Lista and Mosjoen, Norway, with a total capacity of 282,000 tons/year.

In July 2007, Alcoa spun off its soft-alloys business and merged SAPA's extrusion business and held 45% of the joint venture business. The above share replacement will enable Alcoa to completely withdraw from the soft alloy extrusion business, leaving only the hard alloy extrusion business.