Alcan proceeds with preparations for the Kitimat Works Modernization Project



    Company signs engineering and design contract with ABB Group

    KITIMAT, BC, June 21 /CNW Telbec/ - Alcan Inc. announced today that it
has signed a contract with ABB Group for the design and engineering of a new
high-voltage substation that will provide power to the planned expansion of
Alcan's Kitimat smelter. Terms of the contact were not disclosed.
    Michel Jacques, President and CEO, Alcan Primary Metal Group stated:
"Alcan is pleased to announce the signing of this contract. It demonstrates
our commitment to the Kitimat Works Modernization Project and our promise to
our labour union, CAW local 2301, that we would move forward after the
long-term labour agreement was ratified."
    The contract with ABB Group will allow for the design and engineering of
Kitimat's new power substation. ABB Group has announced plans to establish a
permanent office in the Kitimat community by August 2007.
    The announcement of the contract was made at Alcan's new Modernization
Information Office in Kitimat, where Paul Henning, Managing Director of BC
Operations for Alcan Primary Metal, stated that: "This is a significant step
forward for Alcan in BC. With today's announcement, we are demonstrating
Alcan's continued commitment to Northern BC and our determination to move
forward with the modernization project," he added.

    The Kitimat Works Modernization Project was announced on August 14, 2006
and is subject to the final approval of Alcan's Board of Directors and to
certain conditions including environmental permits and the successful
conclusion of agreements with BC Hydro and the CAW union. Alcan reached an
agreement with CAW in May 2007 and is currently working to satisfy the other
two conditions.
    The modernization of Alcan's Kitimat smelter would increase Alcan's
annual global primary aluminum production by more than four percent and make
Kitimat not only one of Alcan's largest wholly-owned smelters, but also one of
the three largest in North America. Kitimat's aluminum production would
increase by 40 percent and reduce GHG emissions by half a million tonnes per
year.

    Alcan Inc. (NYSE, TSX: AL) is a leading global materials company,
delivering high quality products, engineered solutions and services worldwide.
With world-class technology and operations in bauxite mining, alumina
processing, primary metal smelting, power generation, aluminum fabrication,
engineered solutions as well as flexible and specialty packaging today's Alcan
is well positioned to meet and exceed its customers' needs. Alcan is
represented by 68,000 employees, including its joint-ventures, in 61 countries
and regions, posted revenues of US$23.6 billion in 2006. The Company has
featured on the Dow Jones Sustainability World Index. For more information,
please visit: www.alcan.com.

    Statements made in this press release which describe the Company's
intentions, expectations or predictions may be forward-looking statements
within the meaning of securities laws. By their nature, forward-looking
statements involve risk and uncertainty; the Company's actual results or
actions could differ materially from those expressed or implied in such
forward-looking statements. Reference should be made to the Company's latest
Quarterly Report on Form 10-K for a summary of factors that could cause such
differences.

    %B NM %C 1,3,17 %D Kitimat Works




For further information:

For further information: Media Contact: Colleen Nyce, (250) 639-8760,
colleen.nyce@alcan.com; Anik Michaud, (514) 848-8151,
media.relations@alcan.com; Investor Contact: Ulf Quellmann, (514) 848-8368,
investor.relations@alcan.com

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ALCAN - EN

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