Alcan announced yesterday that it plans to invest more than $2 billion over the next ten years to develop a new aluminum production technology that will make Québec the world leader in this field. An initial $634 million will be used to build a pilot plant slated to come on stream by the end of 2010. This good news was made possible by a $400 million interest-free loan from the Government of Québec.

The investment is expected to create 740 highly skilled industrial jobs and 1,200 to 1,500 construction jobs. The engineering studies will get under way in the coming weeks and construction of the pilot plant, located in Jonquière, should begin in 2008, with the first metal production scheduled for the end of 2010.

The new facility will produce 60,000 tonnes of aluminum per year and will serve as a platform for future generations of AP50 smelting technology. Developed by Alcan, the new technology should be much less harmful for the environment than the Söderberg technology that it will replace.

According to Alcan president and CEO Dick Evans, the new technology will generate 6% lower greenhouse gas emissions, use 20% less energy and be twice as efficient.

The second phase will be followed by the addition of 390,000 tonnes of smelting capacity in the Saguenay–Lac-Saint-Jean region by 2015, for a grand total of 450,000 tonnes. The investment project comprises the expansion of the Alma Smelter and/or Arvida Works. Alcan has promised to keep its head office in Québec, and the aluminum-industry giant plans to use its Arvida Research and Development Centre to develop the new AP50 technology.