Alcan to Build Two Plants in Russia

Alcan Inc. has announced that it is investing $55 million in the Russian
packaging market to build and equip two new plants in the Moscow and St. Petersburg regions.

The Moscow site will focus on flexible packaging for the confectionery and dairy markets, and the St. Petersburg site will be dedicated to tobacco packaging. These projects are a part of Alcan Packaging's strategy to develop its geographic footprint in growing economies.

"The Russian packaging market represents an attractive growth opportunity
and is strategically important to Alcan," Christel Bories, president and
CEOof Alcan Packaging, says. "Alcan Packaging has already
established a leading position in the Russian rotogravure food flexibles
market and our aim it to do the same in tobacco. By further establishing our
local manufacturing presence, we will be in a position to better serve our

The food flexibles facility represents an initial investment of
about $25 million for the construction of the greenfield facility
and equipment to support print, lamination and die-cut capabilities. The
greenfield tobacco packaging site is mainly focused on carton production and
will require an initial investment of approximately $30 million.

Production will begin before the end of April 2006 in both facilities.