Pechiney P.A.P. (Pechiney Aluminium Presswerk), a German subsidiary of the Pechiney Group (NYSE: PY), specializing in aluminum profiles extrusion for the transport industry and construction markets, has announced a EUR 18 million investment in a new press, mainly intended for automotive applications.

P.A.P. is one of the leaders on the German profiles market with annual production of 45,000 metric tons through four presses on three production sites (Crailsheim, Landau and Burg). The aluminum profiles market is experiencing fast growth, especially in the automotive sector as their use in several functions (body, suspension systems, fittings, etc.) enables manufacturers to reduce vehicle weight, leading to lower fuel consumption and therefore less greenhouse gas emissions.

The new 4,000 - 5,000 ton press, will add 12,000 tons in annual production capacity and will be particularly adapted to the profile specificities required by the automotive industry. It will come on stream in the fourth quarter of 2002 and will employ approximately 60 people when operating at full capacity.

Pechiney, the world's fourth-largest aluminum producer, achieved sales of EUR 400 million in the automotive sector in 2000 for total production of 185,000 metric tons. Over the past five years, a EUR 60 million R&D budget has been earmarked for this sector. Supported by Pechiney Automotive, a structure dedicated to the motor vehicle industry, the Pechiney Group provides major European constructors (such as PSA Peugeot-Citroen, Audi, Renault and Daimler Chrysler) and major OEM with unmatched expertise in casting alloys, profiles and rolled products. These products have applications in every kind of vehicle and part (hoods, wheels, doors, cylinder heads, engine blocks, etc.).

Pechiney is an international manufacturer with core businesses in primary aluminum, aluminum fabricated products and high value-added packaging. Pechiney, which reported sales of 10.7 billion euros (approximately US $12 billion) in 2000, also manufactures ferroalloys and operates an international trade business. Its shares are traded on the Paris Stock Exchange; its ADRs are traded on the New York Stock Exchange.