Alcan will spin off its rolling products business into a new venture called Novelis in early 2005.
The new company, based in Canada, will be the world's largest aluminum rolled products company, with 38 factories in 12 countries and pro forma revenues of $6 billion (currently E4.9 billion) in 2003.
Alcan has spun off the business partly to achieve the divesture required by competition authorities when Alcan acquired French aluminum specialist Pechiney earlier this year.
The new company includes Alcan's rolling facilities in Norf, Göttingen and Nachterstedt, Germany, and its rolling mill in Oswego, New York, USA.
US and European legislators ordered Alcan to spin off these plants to reduce the consolidation of market power from the Alcan-Pechiney merger.
Novelis customers will include suppliers such as ThyssenKrupp and the major automakers.