NEW YORK -- Alusuisse Lonza Group's decision to merge itself into Germany's Viag AG next August caps a restructuring plan that began in the mid-1980s and included a complete exit from the United States, where the Zurich-based aluminum, chemicals and packaging company once had sizable alumina refining and primary aluminum smelting assets, considerable aluminum rolling capacity and an aluminum scrap recovery unit.

The proposed combination, which would put about 700,000 tonnes of annual primary aluminum capacity and sizable mill product capacity under one flag-all of it behind a tariff wall defending European Union aluminum ingot and sheet producers-isn't expected to have much direct impact on the U.S. market.

Switzerland accounted for a mere 187 tonnes out of the approximately 2 million tons of primary and secondary ingot imported into the U.S. market last year, and 2,606 tonnes of the 560,000 tonnes of aluminum mill products also imported in 1997. Germany sent 1,015 tonnes of unwrought aluminum here in 1997, along with 38,227 tons of mill products-the latter equal to roughly 7 percent of this country's total mill product imports.

When it finally bowed all the way out of the U.S. aluminum business in 1994 with the sale to Ormet Corp. of a large rolling mill in Hannibal, Ohio, a secondary aluminum operation in Bens Run, W.Va., and small mill product operations in Tennessee and Mississippi grouped together as Consolidated Aluminum Corp., Alusuisse said, "We want to focus on our aluminum business in Europe and expand a little in Asia."

Earlier divestments included primary aluminum smelting assets in Hannibal (acquired by Ormet); smaller smelting units in Lake Charles, La., and New Johnsonville, Tenn. (both long out of commission); and an alumina refinery in Louisiana.

Robert Unger of Planned Technology Associates of Ridgewood, N.J., a former director of technological and market research for the Swiss company's Alusuisse of America unit, suggested that the decision to merge into Viag had pronounced defensive motives behind it.

Noting Aluminum Co. of America's recent acquisition of Alumax Inc. and the Pittsburgh giant's earlier acquisition of aluminum assets in Spain, Italy and Hungary-not to mention earlier buildups of European positions by Alcan Aluminium Ltd. and Norsk Hydro AS-Unger said, "One could speculate that considerations behind the proposed merger include guaranteeing Alusuisse full participation in the future euro-based European Economic Union.

"In effect, looking at the market from an aluminum viewpoint, cross-border combinations are now under way in order to achieve the perceived economic size required to supply-competitively-current and future markets."

If the combination goes through, Unger added, "one could speculate that one or two other possible combinations are possible in Europe, the U.S. and Japan."

The merger, Unger said, would give the combined company a very strong position in Germany; an improved position in the overall European market, particularly when it comes to foil, sheet and extrusions for the packaging and transportation markets, but only a modest presence in the U.S. already held by Viag through its minority interest in a consortiumowned smelter in Quebec, lately indisposed to expand because of future power rates; and its extrusion operations in New York, Florida and Arizona.