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Alcoa workers in Richmond, Va., area face uncertainty
(Richmond Times-Dispatch (VA) (KRT) Via Thomson Dialog NewsEdge) Dec. 23--The company that is buying Alcoa Inc.'s Richmond-area operations says it expects the ownership transition to have a minimal impact on employees, at least through the end of 2008.
In an e-mail sent to about 3,000 Alcoa employees late Friday, Rank Group Ltd. said it will preserve current medical and other employee benefits through next year.
Rank Group said it plans to rename the Richmond-area operations Reynolds Packaging Group, using a name long associated with the manufacturing company and its products, which include Reynolds Wrap aluminum foil.
The New Zealand-based firm offered few other details about its long-term plans for the local manufacturing operations and any impact on jobs.
"We acknowledge that there will be some uncertainty during the transition to the new business structure and we understand that the impacts of this decision are of some concern to you and your families," said the e-mail from a Rank Group executive, Thomas Degnan. A copy was obtained by the Richmond Times-Dispatch yesterday.
Rank Group reached an agreement late Friday to buy Alcoa's flexible-packaging and consumer-products businesses for $2.7 billion. The businesses comprise Alcoa's operations in the Richmond area, where the company reported the equivalent of about 1,300 full-time employees as of Jan. 1.
The local operations were part of Reynolds Metals Co. until 2000, when Pittsburgh-based Alcoa acquired the Richmond-based aluminum company.
Efforts to reach employees or representatives of the company's union yesterday were unsuccessful.
Rank Group is a private investment company run by Graeme Hart, a billionaire investor who is reported to be New Zealand's richest person.
The company has been building a global packaging empire, spending about $5 billion over 18 months to acquire drink-carton makers, Bloomberg News reported. Last year, it bought International Paper Co.'s beverage-packaging unit for $500 million. In March, it bought Switzerland-based packaging company SIG Holding for $2 billion.
"Rank Group was attracted to Alcoa's packaging and consumer business because of its fit to our existing packaging assets throughout North America, Asia Pacific and Europe," the company said in the e-mail.
"We also see the business having a solid operations history, excellent global footprint to leverage, a solid customer base, and market fundamentals that remain strong even with a mature industry in North America."
Rank Group said it has appointed four of its senior executives to work with Alcoa executives in a transition team.
To see more of the Richmond Times-Dispatch, or to subscribe to the newspaper, go to http://www.timesdispatch.com.
Copyright (c) 2007, Richmond Times-Dispatch, Va.
Distributed by McClatchy-Tribune Information Services.
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