Selling purity

In June 2005, Alcan announced its was planning to restructure the Mercus site. Back then, it said that it intended to cease the fabrication of high-purity products (4N) for the capacitor market, while looking for a buyer for its high-purity (5N) products.

Praxair, the largest industrial gases company in North and South America, has made a number of similar acquisitions to broaden the scope and offering of its Praxair Electronics division in recent years.

"The addition of high-purity metal alloys production to our portfolio will further strengthen our ability to grow our materials science business in the semiconductor market," said Ray Roberge, President, Praxair Electronics. "Through this transaction, we will also gain a materials supply position in the flat panel display market which complements our gases business in that industry."

Following consultation with the relevant workers’ councils, the parties expect to enter into a definitive asset transfer agreement.

The transaction should be completed in the first quarter of 2006.