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Market Demands
Sustainability Examples
Product Stewardship
Innovation and Industry Shifts
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MARKET DEMANDS

Other areas of Alcan's business are also in the midst of managing and responding to the many competitive challenges brought about by global competition and quickly evolving global markets for a range of Alcan's products.

Engineered Products
Alcan's Engineered Products business group is also in a position to respond to evolving societal demands through its wide range of products. As discussed in the section on Product Stewardship, a large part of this ability to anticipate changes is supported by using a life cycle perspective to better understand the full life cycle impacts of its products. Key innovations in the Engineered Products group demonstrate Alcan's ability, in cooperation with customers and other stakeholders, to contribute to broader societal environmental goals. Product Stewardship is increasingly representing a substantial business opportunity for Alcan's Engineered Products group.

The A380, with a capacity of 555 passengers, uses 10 times more aluminum than conventional single-aisle planes and three times the amount used in current wide-body aircraft. A weight reduction of 10% per aircraft was achieved by combining innovative alloys. Alcan estimates that this weight reduction will save 90,000 tonnes of aviation fuel during the lifetime of one aircraft, representing a reduction of 300,000 tonnes of greenhouse gas emissions.

Sustainability Example:

Aluminum injection moulds speed up time-to-market

One area in particular where the Engineered Products business group is working with its customers to respond to societal challenges is the transportation of people and goods. Demands for improved environmental performance on the transportation front are significant, particularly with the global challenge of climate change.

This is also well illustrated in Alcan's long-standing efforts in developing new alloys and fabrication processes for aerospace applications. These initiatives, which capitalize on the life cycle benefits of aluminum, have led to significant innovative weight-saving solutions demonstrated in the new Airbus A380 airliner. Alcan continues to strengthen these efforts in the firm belief that material science, relating both to aluminum alloys and composites, still contains vast potential for further progress in the sustainable development of its businesses.

Alcan Mass Transportation Systems is also creating a market through a combination of technical expertise, product, and the Company's position on sustainability. In partnership with the U.S. Business Council for Sustainable Development, Alcan is currently working with New York City Transit, Oak Ridge National Lab, and the New York State Energy Research and Development Authority on expanding light-weighting technology for rail freight.

Alcan is helping customers meet increasingly sophisticated and technical demands and to drive these demands in the creation of new markets that meet sustainability objectives by applying its product stewardship and life cycle concepts.

Sustainability Example:

Lighter and more sustainable railway cars


Packaging

Packaging operates in a global industry that is in constant change as customers adapt to the rapid pace of evolving consumer preferences. In addition to evolving demands for greater functionality, convenience and portability in a range of packaging products, society is also increasingly demanding more secure, tamper-proof and resilient packaging. The Packaging group must constantly adapt and innovate to serve its customers' responses to these types of evolving consumer needs, while responding to ecological and safety concerns and advising customers about ways to improve product performance. This aspect of packaging operations is both important and highly complex, given the broad variety of products and markets.

One of Packaging's innovations is N'CRYPT® technology. In 2004, Packaging was the recognized technology leader in the global market for this important solution to the increasing problem of counterfeit pharmaceuticals. Through fine line print features, special inks, encrypted codes and holograms, Alcan's customers continue to apply both overt and covert solutions in a multi-layered, brand-enhancing manner. This Alcan innovation continues to help protect consumers, significantly hinders a counterfeiter's efforts to sell unapproved medications, and is providing a strategic market opportunity for Alcan worldwide.

Sustainability Example:

Singen investment responds to customer needs
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