Performance
Alcan Engineered Products
Alcan Engineered Products is a global sector-leading business strongly committed to developing innovative, value added products for a broad range of markets and applications. The portfolio consists of seven downstream businesses: aerospace, non commodity aluminium rolled products, aluminium extrusions, cable, composite products, automotive components and international trade.
Regrettably, two fatalities occurred during the year at Engineered Products operations. The overall Recordable Case Rate continued to improve and at 0.95 was a 19 per cent improvement on 2007.
As at 31 December 2008, the business unit operated at 97 operating sites in 34 countries. Following the acquisition of Alcan Inc. in October 2007, Rio Tinto decided to divest Alcan Engineered Products. The sale process is ongoing.
2008 operating performance
Following favourable market conditions and a record performance in 2007, the 2008 business environment proved very challenging. Market conditions deteriorated over the course of the year and the business was affected by a number of operating issues including equipment breakdowns and a casthouse fire. An asset integrity audit was conducted from which a follow up action plan is currently being formulated. In response to the adverse impacts of the sharp economic downturn and one off operating issues, Engineered Products implemented a broad range of measures to reduce costs and conserve cash. These generated approximately US$60 million in cost savings in 2008.
