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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.
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| 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. |
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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.
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.
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