News

Alcoa may sell its packaging and consumer businesses even though the division's first-quarter earnings doubled this year.

The global aluminium group said today it would conduct a strategic review of its flexible packaging and consumer products divisions, as well as its Closure Systems International and Reynolds Food Packaging businesses.

The four operations employ around 10,000 people in 22 countries, and generated sales of £1.6bn ($3.2bn) and after-tax operating profits of £47.5m in 2006.

Alcoa has three sites dedicated to packaging in the UK, at Amersham, West Bromwich and Sedgefield.

The company hopes to complete the review by the end of 2007.

Alcoa chairman and chief executive Alain Belda (pictured) said: “Now is the right time for us to explore whether they may provide more value on their own or as part of another company.”