Pechiney

Pechiney was a major French aluminium and industrial materials group whose history extended from nineteenth-century chemical manufacturing to worldwide participation in nearly every stage of the aluminium value chain. Henri Merle founded the company in 1855 at Salindres as Compagnie des Produits Chimiques Henri Merle, initially producing caustic soda. In 1860, it entered aluminium production using the chemically based process developed by Henri Sainte-Claire Deville. The French government granted the enterprise a thirty-year monopoly connected with this production, helping establish an early industrial position in a metal that was then still relatively difficult and expensive to make. The business changed names and corporate form several times. In 1897 it became Société des Produits Chimiques d'Alais et de la Camargue. During and after the First World War, Tréfileries et Laminoirs du Havre acquired a substantial interest, and the company took control of Société électrométallurgique de Froges in 1919. The resulting group was known as Compagnie des produits chimiques et électrométallurgiques d'Alais, Froges et Camargue. Its later name, Pechiney, was adopted in 1948 in recognition of Alfred Rangod Pechiney, a former influential managing director. Pechiney developed a significant European presence during the 1930s and began exploring the American market in 1911, although its stronger North American foothold came in the 1960s. International expansion accelerated after entry into Africa in 1954, followed by activities and investments in Australia, Latin America, Greece and Asia. The group broadened beyond primary aluminium into copper, aluminium transformation, speciality packaging, aerospace applications, international commodities trading and metal brokerage. Its reputation was particularly associated with aluminium electrolysis technology and with the development of higher-value applications rather than only commodity metal production. A notable expansion was the 1967 acquisition of Tréfimétaux, created in 1962 through the combination of Tréfileries et Laminoirs du Havre and Compagnie française des métaux. Tréfimétaux became Pechiney's copper division and contributed a smaller but strategically relevant part of group activity. In Australia, Pechiney's involvement included the acquisition of GOMINCO in 1962, participation in Queensland Alumina Limited, and an unsuccessful project at Aurukun. The Australian experience was later regarded within the company's historical record as a strategic disappointment, especially because contractual and financing arrangements limited the value Pechiney received from the Queensland project. Before its takeover, Pechiney had become one of the world's largest aluminium producers and developers of aluminium products. It operated across bauxite mining, alumina and aluminium production, fabrication, engineered applications, packaging, trading and brokerage. At the time of its acquisition it reportedly employed about 34,000 people and operated approximately 320 manufacturing and sales facilities in 50 countries. Its London Metal Exchange brokerage subsidiary, Brandeis (Brokers) Ltd, operated from 1981 to 2000. Alcan acquired Pechiney in 2003, ending its existence as an independent major French industrial group. Alcan was itself acquired by Rio Tinto in 2007, and Pechiney's former activities consequently became part of the broader Rio Tinto Alcan structure. The Pechiney name therefore represents a historical corporate brand rather than an active standalone aluminium producer.

Pechiney's origins lay in the chemical industry rather than in a modern aluminium corporation. Henri Merle established Compagnie des Produits Chimiques Henri Merle at Salindres in 1855 to manufacture caustic soda. The company began producing aluminium in 1860 with the chemically based method associated with Henri Sainte-Claire Deville, who had developed the process in 1854. The French state granted the company a thirty-year monopoly, giving it an important early position in the industrialization of aluminium. The company adopted the name Société des Produits Chimiques d'Alais et de la Camargue in 1897. It investigated the American market as early as 1911, while its European base expanded during the 1930s. During the First World War, Tréfileries et Laminoirs du Havre acquired a major interest. In 1919, the company took control of Société électrométallurgique de Froges and became Compagnie des produits chimiques et électrométallurgiques d'Alais, Froges et Camargue. The corporate name Pechiney was adopted in 1948, referring to Alfred Rangod Pechiney, a former managing director who had been influential in the business. Internationalization became more pronounced after the Second World War. Pechiney expanded into Africa in 1954 and later developed interests or operations in Australia, Latin America, Greece and Asia. It also strengthened its presence in the United States during the 1960s. The group sought control or participation across the aluminium chain, including bauxite, alumina, aluminium smelting, fabrication and specialized applications. Its technological profile was closely connected with electrolysis, while its downstream activities included packaging and aerospace products. Australia became an important but difficult chapter. In 1962 Pechiney purchased GOMINCO, connected with bauxite interests on the Gove Peninsula in Australia's Northern Territory. Questions raised by Yolngu traditional owners, including those expressed through the Yirrkala bark petitions, contributed to Pechiney's withdrawal from the Gove project. It instead joined other companies seeking to develop bauxite mining at Weipa and aluminium production near Gladstone. Pechiney acquired a 20 percent interest in Queensland Alumina Limited. The company later considered the project economically and strategically unsatisfactory, and a commercial and legal dispute over the financing arrangements was not resolved until 1993. A further Aurukun project involving Pechiney, Billiton and Tipperary also failed to produce an operating development. Pechiney expanded its metals portfolio in France. In 1962 Tréfileries et Laminoirs du Havre merged with Compagnie française des métaux to form Tréfimétaux. Pechiney acquired Tréfimétaux in 1967 and used it as its copper division, which represented a relatively small share of total group activity but reinforced its broader non-ferrous-metals position. The company also participated in international commodities trading and in brokerage of aluminium and other metals on the London Metal Exchange. Brandeis (Brokers) Ltd, a historic LME broker and ring dealing member, operated as a Pechiney subsidiary from 1981 to 2000. Its trading authorization ended after a Financial Services Authority ban, and Standard Bank London acquired its customer accounts and positions. This episode marked the end of Pechiney's direct association with that brokerage business. By the beginning of the twenty-first century, Pechiney had become a globally diversified aluminium group. It reportedly ranked fourth among global producers and developers of aluminium products, with around 34,000 employees and approximately 320 manufacturing and sales sites in 50 countries. Its businesses ranged from raw-material extraction and primary metal production to packaging, aerospace applications, trading and engineered products. Alcan acquired the company in 2003. When Rio Tinto subsequently acquired Alcan in 2007, Pechiney's former assets and activities were absorbed into Rio Tinto Alcan. The Pechiney corporate brand consequently became historical rather than an active independent business.

• 2007

  Former Pechiney operations enter Rio Tinto Alcan

  [1]Pechineyen.wikipedia.org

  Rio Tinto acquired Alcan, incorporating Pechiney's former activities into Rio Tinto Alcan.

• 2003

  Acquired by Alcan

  [1]Pechineyen.wikipedia.org

  Alcan acquired Pechiney, ending its independent corporate existence.

• 2000

  Brandeis brokerage exits LME trading

  [1]Pechineyen.wikipedia.org

  Pechiney's Brandeis brokerage subsidiary was banned from trading by the Financial Services Authority, and its customer accounts and positions were sold to Standard Bank London.

• 1967

  Tréfimétaux acquired

  [1]Pechineyen.wikipedia.org

  Pechiney acquired Tréfimétaux, which became the group's copper division.

• 1954

  Expansion into Africa

  [1]Pechineyen.wikipedia.org

  Pechiney expanded its international aluminium activities into Africa.

• 1948

  Pechiney name adopted

  [1]Pechineyen.wikipedia.org

  The company changed its name to Pechiney, honoring former managing director Alfred Rangod Pechiney.

• 1919

  Combination with Froges

  [1]Pechineyen.wikipedia.org

  After Tréfileries et Laminoirs du Havre acquired a major interest, the company took control of Société électrométallurgique de Froges and adopted a combined corporate identity.

• 1897

  Corporate name changed to Société des Produits Chimiques d'Alais et de la Camargue

  [1]Pechineyen.wikipedia.org

  The original chemical company adopted a new corporate name as its operations developed.

• 1860

  Entry into aluminium production

  [1]Pechineyen.wikipedia.org

  The company began producing aluminium using the chemically based process developed by Henri Sainte-Claire Deville.

• 1855

  Company founded at Salindres

  [1]Pechineyen.wikipedia.org

  Henri Merle founded Compagnie des Produits Chimiques Henri Merle as a caustic-soda producer.

A vertically integrated, technology-oriented international aluminium and metals group, combining primary production, processing, speciality applications, trading and brokerage.

• Aluminium production · 1860

  Primary aluminium

  Primary aluminium was the core of Pechiney's industrial identity. The group developed from early chemically based aluminium production into a large-scale producer using electrolysis technology and participating in the wider chain from bauxite and alumina through smelting and downstream transformation.

• Packaging

  Speciality aluminium packaging

  Pechiney developed a substantial speciality-packaging business alongside its primary-metal operations. This activity represented the group's emphasis on value-added aluminium applications rather than treating aluminium solely as a commodity.

• Aerospace materials

  Aerospace aluminium applications

  The company supplied and developed aluminium products for aerospace-related applications. These activities reflected Pechiney's use of metallurgy and fabrication expertise to serve technically demanding industrial markets.

• Copper and non-ferrous metals · 1967

  Copper products

  Following its acquisition of Tréfimétaux in 1967, Pechiney operated a copper division. Copper was not the group's principal business, but it broadened the company beyond aluminium and strengthened its position in non-ferrous metals.

• Industrial commodities services · 1981

  Metal trading and brokerage

  Pechiney participated in international commodities trading and metal brokerage, including activity connected with the London Metal Exchange. Its Brandeis subsidiary operated as an LME ring dealing member from 1981 until 2000.

• 2003

  Accept acquisition by AlcanM&A

  Background

  Pechiney was operating as a large international aluminium group with activities spanning raw materials, production, fabrication and trading.

  Action taken

  Alcan acquired Pechiney.

  Aftermath

  Pechiney ceased to operate as an independent corporate group; its former businesses later became part of Rio Tinto Alcan.

  Source

• 1967

  Acquire TréfimétauxM&A

  Background

  Pechiney sought to broaden its non-ferrous-metals activities beyond aluminium.

  Action taken

  It acquired Tréfimétaux and organized the business as the group's copper division.

  Aftermath

  Copper became a subsidiary activity that contributed to the diversification of the Pechiney group.

  Source

• 1963

  Withdraw from Gove and participate in the Queensland projectStrategy

  Background

  Pechiney faced consultation concerns from Yolngu traditional owners in relation to the Gove bauxite project and reconsidered its Australian entry.

  Action taken

  The company abandoned its Gove involvement, joined a consortium focused on Weipa and Gladstone, and acquired a 20 percent stake in Queensland Alumina Limited.

  Aftermath

  The Queensland arrangement later became a source of commercial dissatisfaction and a long-running financing dispute that was resolved in 1993.

  Source

1. 1Pechineyen.wikipedia.org