News Release
For Immediate Release
Office of the Premier
May 8, 1998

CLARK MEETING WITH ALUMINUM PRODUCERS REYNOLDS AND KAISER AND GLOBE SILICON PRODUCER


VICTORIA - Premier Glen Clark will discuss potential investment in B.C. with senior executives from Reynolds Metals Co., the third largest aluminum producer in the world, Kaiser Aluminum & Chemical Corp., also in the top 10 western world producers, and Globe Metallurgical Inc., the largest producer of silicon metal in North America, next week.

The premier will be in Richmond, Virginia, Monday, May 11 and in Beverly, Ohio, and Pleasanton, California, on Tuesday. 

"These firms are considering expanding their operations, and are interested in investment opportunities in our province," said Clark. "These meetings indicate the Power for Jobs strategy is working by attracting potential investors who will have access to power at a competitive price, in return for expanding their businesses and creating jobs for B.C.

"British Columbia is one of the most attractive locations in the world for new investment for the aluminum industries," added Clark. "We have numerous advantages over other jurisdictions which produce aluminum. We have inexpensive and abundant power, proximity to major U.S. and Asia-Pacific markets, numerous potential coastal and inland sites, excellent transportation infrastructure and the skilled labor force to make the package complete." 

This year, the provincial government has announced four potential investment opportunities in the aluminum industry. An agreement has been concluded with Alcan and memoranda of understanding have been signed with Alcoa, Alumax and Columbia Ventures Corp. to conduct planning and feasibility studies for the development of primary aluminum production plants.

If all MOUs signed this year lead to construction of three new plants, B.C.'s ability to use hydroelectric power as an investment tool could lead to more than 6,000 direct and indirect jobs.

The premier said, "B.C. is well positioned for investment in a silicon production plant. We have superior quartz deposits in the Kootenays, an abundance of power, and proximity to key U.S. and Asian markets."

Clark noted that the recent provincial budget announced a plan to make B.C. more competitive, attract investment and create new jobs. "These visits with senior officials are another step towards achieving that goal," added Clark.

Contact: 

Press Secretary 
Office of the Premier 
(250) 812-2849 


BACKGROUNDERS

Reynolds Metals Company

Reynolds Metals Company is the world's third-largest aluminum producer. Reynolds serves customers world-wide in various markets such as packaging and consumer products, construction, distribution and transportation. The company also is expanding into emerging markets, including China, Russia and India. Reynolds employs approximately 25,500 people at more than 100 manufacturing locations in 24 countries. Founded in 1919 as the U.S. Foil Company, Reynolds has its world headquarters in Richmond, Virginia. 

Reynolds operates four market-based, global businesses: 

Base Materials - This business mines bauxite and produces alumina, carbon products and primary aluminum, including value-added products such as biller, foundry ingot and rod used in electrical cable. It sells to both internal and external customers. 

Packaging and Consumer - Reynolds is the world's leading producer of aluminum foil and a major manufacturer and converter of plastic products. They sell a broad range of aluminum foil, plastic packaging and consumer products, including an extensive line of wraps and bags marketed under the Reynolds brand name such as Reynolds Wrap household aluminum foil. 

Construction and Distribution - This business sells architectural products such as Reynobond aluminum composite material and architectural window and door systems. Reynolds also distributes aluminum, stainless steel and other specialty metal products under the name Reynolds Aluminum Supply Company (RASCO). Reynolds also manufactures polymer-coated magnet wire for electrical transformers and sells various infrastructure technologies including aluminum bridge decks and highway sound barriers. 

Transportation - Reynolds serves the automotive market in three principal product areas: wheels, heat exchangers and structures. Products include cast and forged aluminum wheels, heat exchanger tubing, and structures such as bumpers, door frames, sunroof frames and engine cradles. 


Kaiser Aluminum and Chemical Corporation

Kaiser Aluminum Corporation (NYSE:KLU), operating through its wholly owned subsidiary Kaiser Aluminum & Chemical Corporation, is one of the world's leading producers and marketers of alumina and aluminum. 

The company operates in all principal aspects of the aluminum business. It mines bauxite, the major aluminum-bearing ore, refines bauxite into alumina, the intermediate material, and produces primary aluminum and fabricated aluminum products which it sells to customers directly or through distributors. 

Kaiser manufactures aluminum products for the aircraft, aerospace, automotive, other transportation, beverage can, electronics, communications, consumer durables, marine, sporting goods, building and construction, and industrial markets, to name a few. In addition, the company licenses its technology and provides technical assistance to aluminum producers around the globe. 

The company operates through business units and support organizations that act both independently and in concert. Kaiser Aluminum International develops worldwide growth and investment opportunities, while Kaiser Aluminum Commodities oversees the alumina and primary aluminum businesses and, through its Kaiser Commodities Marketing arm, the marketing opportunities arising from their interrelationship. 

In addition to alumina and primary aluminum, other businesses are flat-rolled products, the Kaiser Micromill™ process, and engineered products, which includes extrusions, forgings, and castings. Technological expertise is provided by several entities within Kaiser, the largest of which is the Center for Technology. 

The company has plants, offices, and research and development facilities at 32 locations in 12 states in the U.S. and seven other countries. Altogether, it has about 9,600 employees, assets of about $3 billion, and annual sales in excess of $2 billion. 

At year end 1997, MAXXAM Inc. (ASE:MXM) directly and indirectly owned about 63 per cent of the common stock of Kaiser Aluminum Corporation.


Globe Metallurgical Inc.

Founded in 1871 as "Globe Iron Company" the company has produced high quality metals for over 125 years. In 1987, Globe management and Lee Capital Holdings, a Boston investment company, acquired the company and its two plants in Beverly, Ohio and Selma, Alabama. The company embarked on a new business strategy, which involved abandoning low price, commodity grade products for the steel industry, in favour of high quality, silicon metal for aluminum, chemical and electronics industries and specialty alloys for iron foundries. Exports increased from 1 per cent of sales in 1987 to over 15 per cent today. Globe alloys are used in foundries throughout the world. 

Globe has grown by acquiring plants in Springfield, Oregon (1993), Niagara Falls, New York (1994), and Sarpsborg, Norway (1997). In addition, in 1997 Globe acquired a 33 per cent ownership of FeSil ASA, the second largest Norwegian ferroalloy producer. Globe Metallurgical is the largest producer of silicon metal in North America, and is the largest producer of specialty foundry alloys in the world. 

Globe has over 500 employees at its four plant locations in the United States and one in Norway. 

Annual Sales exceed US$275 million. Markets include: 

Heavy industries (e.g. specialty foundry alloy products for ductile iron used in the transportation, farm equipment and construction equipment industries); 
Chemical industries (e.g. to produce over 5000 products including soft drinks, potato chips, car wax, deodorant, hair spray, sealants and adhesives); 
Electronics industries (e.g. producers of silicon chips and solar cells); 
Aluminum producers (for producing alloys for automotive parts). 

The East Kootenay region of British Columbia could be an ideal location for the production of silicon metal. The region has many competitive advantages: abundance of key raw materials (e.g. high quality quartz, wood chips and coal); competitively priced electricity; excellent labour force; available industrial sites exceeding 300 acres; a community receptive to heavy industry; compelling need for new industrial activity following the closing of the Sullivan mine.