Paul Henning Introduction

2003 was a year of challenge and achievement for Alcan Inc. (our global parent) and for Alcan B.C. Adverse business conditions (a soft global economy, increasing competition from China and Eastern Europe, and a weakening U.S. dollar) and rising costs (fuel, pensions, and recycled metal) reduced Alcan Inc.’s global income by about $180 million. Offsetting gains came from increased London Metal Exchange prices, cost-control initiatives, and profits from 2003 acquisitions – most notably Pechiney, a leading international producer of aluminum and packaging products.

Kitimat Works’ key challenges were restrictions on our hydroelectric generating capacity imposed by Nechako Reservoir’s low water levels, and the difficulties imposed by our smelter’s aging Söderberg technology. We are proud to report that our state-of-the-art DC4 Sheet Ingot Casting Centre set a new production record of 116,800 tonnes per year, while building its safety record to nine years and one million hours without a lost-time accident through February, 2004. In December, 2003 external auditors certified three of our management systems under the following standards: ISO 9001 (Quality), ISO 14001 (Environmental Management), and OHSAS 18001 (Health and Safety).

These achievements reflect the commitment of our 1,619 Alcan B.C. employees to the sustainability principles underlying Alcan’s Integrated Management System (AIMS). Rolled out world-wide during 2002-2003, AIMS integrates economic performance with environmental and social values through three powerful programs: MaxValue, EHS FIRST, and Continuous Improvement. MaxValue’s goal is to double the value of our company every five years, through pursuit of opportunities to create value and to eliminate waste. EHS FIRST, launched company-wide in 2003, aims at reducing our environmental footprint and protecting the health and safety of our employees. Continuous Improvement (CI) was also rolled out company-wide in 2003, and together with EHS FIRST, represents the largest commitment to employee training in Alcan’s history. CI combines the pursuit of quality and consistency with determination to eliminate inefficiency and waste – in all facets of our business practices and operations. The AIMS commitment to sustainability is the bond that unifies these three wide-ranging programs.

While continuing to report across the three traditional pillars of sustainability (economic, environmental, and social performance), this year we have created a new category – EHS FIRST. This reporting category aligns with our integrated approach to managing Environmental, Health, and Safety issues, and reflects the importance of those issues in the management of our business.

With that introduction, I invite you to explore Alcan B.C.’s fifth annual Performance Report. We would appreciate your thoughts on this report – by calling us toll-free at 1-866-252-2652, or by sending an email to alcan.in.bc.mag@alcan.com. Your feedback is vital to our quest for continuous improvement.

Paul Henning
Director of Operations,
Alcan Primary Metal, British Columbia