Performance
Integration of Alcan
The integration of Alcan delivered after tax synergy savings of US$585 million in 2008. (In July 2007, after tax synergies were targeted at US$600 million by 2009 year end. In November 2007, the target was raised to US$1.1 billion in 2010). Current synergies represent 53 per cent of the revised target and were achieved using only 50 per cent of the planned operational expenditure at US$47 million.
Rio Tinto Alcan maintains strong discipline and focus on the importance of successful integration, and on leveraging shared resources within the Rio Tinto Group. The benefits delivered to date are derived from a range of business areas, from new revenue opportunities to operational improvements and expense reductions. In the current economic climate, integration remains a key priority. As a result, Rio Tinto Alcan remains focused on delivering greater benefits and on maximising value by optimising processes and reducing costs. Synergies have accelerated over the past year and were delivered ahead of plan by 39 per cent. With the Integration Steering Committee and Integration Management Office continuing to oversee the process, we remain on track to reach the targeted synergies.
