02/18/98

Operational Stability -- SIGNATURE OF LONG-TERM FRAMEWORK AGREEMENT BETWEEN ALCAN AND UNIONS AFFILIATED WITH FSSA AND UNITED STEELWORKERS

Jonquière, Quebec - February 18, 1998 - Following a positive vote by employees belonging to unions affiliated with the FSSA and the United Steelworkers of America, Alcan and union representatives today signed an 18-year framework agreement aimed at maintaining operations and customer service at the following Alcan facilities in Quebec: Vaudreuil Works, Arvida Works, Laterrière Works, Guillaume-Tremblay Works, Beauharnois Works, Harbour Facilities, Roberval and Saguenay Railway, Arvida Research and Development Centre, Quebec Power Operations.

Under this framework agreement on operational stability, the parties thus commit themselves to do everything possible to renew collective agreements and settle disputes without recourse to traditional leverage tools such as strikes, lockouts and pressure tactics. The framework agreement also sets the expiry date for the next collective labour agreement as December 31, 2003.

Discussions with union representatives from the facilities in question have also identified the broad principles for more specific agreements covering key issues such as job security, internal equity, global compensation and working conditions.

"We are proud to have succeeded, with the unions and employees, in making operational stability a shared project," states Yvon D'Anjou, Alcan Smelters and Chemical Ltd. vice president for Quebec. "We are also committed for the coming 18 years to do our utmost to avoid shutting down operations and to ensure our customers of reliable, uninterrupted supplies. This is a major competitive advantage and a decisive factor for future growth, for Alcan, the entire Saguenay-Lac-Saint-Jean region and the other regions of Quebec where we are present."

D'Anjou adds, "Alcan employees wanted reassurance about job security, wages and working conditions. Discussions on operational stability have allowed us to address these issues. Employees have also committed themselves to direct involvement in meeting their plants' business objectives.

Over the coming weeks, Alcan and union representatives will finalize their discussions on a series of specific agreements. At the facilities, discussions will get under way on work organization and the renewal of collective agreements. The parties' goal is to sign a labour contract somewhere around May 1.

Media Relations (Montréal): Alain Bergeron 1 (514) 848-8232

Saguenay: Margot Tapp 1 (418) 699-4045 ou 690-6895

Thursday February 19, 8:36 am Eastern Time

Company Press Release

Alcan Aluminium Limited - To Meet Rising Aluminum Demand With Go-Ahead For Alma Smelter

MONTREAL, Feb. 19 /CNW-PRN/ - Alcan Aluminium Limited announces the construction of a 375,000-tonne capacity aluminum smelter in Alma, Quebec. The total cost is estimated at US$1.6 billion, and construction will extend over a period of 40 months. The first cells will be commissioned in the fall of 2000.

``After 18 months of studies and consultations, I am particularly pleased that all of the required elements are in place to ensure the project's long-term success,'' stated Jacques Bougie, President and Chief Executive Officer of Alcan Aluminium Limited. ``I am confident in the continuing growth in demand for aluminum. Use of existing infrastructure and the size of the facility will make this smelter highly competitive internationally, thereby advancing our objectives in generating value for shareholders. Thanks to Alcan's excellent financial position, we will be able to complete the project efficiently. Moreover, the project has the full support of employees and people in the region.''

The Alma smelter project fits in with Alcan's corporate growth strategy and its Quebec smelter rebuild program. The new facility will replace the existing Isle-Maligne plant, also located at Alma, which has a production capacity of 75,000 tonnes. The project will bring the Company's primary aluminum production capacity up to 1.9 million tonnes per year.

The smelter will use state-of-the-art technologies to protect the environment and achieve greater energy efficiency. Once it comes on stream, the Alma smelter will employ approximately 650 people, 425 of them coming from the nearby Isle-Maligne plant. Work at the site will get under way in a few weeks. At the peak of construction, over 2,000 workers will be employed.

Alcan Aluminium Limited is a multinational company engaged in all aspects of the aluminum industry. With operations and sales offices in over 30 countries, Alcan is one of the most international aluminum companies in the world, as well as the largest producer of flat-rolled aluminum products.