Shares of Foothill Ranch-based Kaiser Aluminum Corp. jumped Tuesday on word it’s expanding a Washington plant and could be a potential buyer of Alcan Inc.’s aerospace division.
Kaiser, a maker of aluminum parts for Boeing Co. and others, plans to spend $34 million to expand its plant in Trentwood, Wash., the company said.
The spending, along with $105 million in earlier investments, stands to double Kaiser’s ability to produce aluminum plates.
Meanwhile, Kaiser has been cited as a possible buyer of the aerospace division of Montreal’s Alcan, which Pittsburgh-based Alcoa Inc. is seeking to buy for $28 billion.
Alcoa executives were meeting with potential buyers of the Alcan aerospace unit this week at the Paris Air Show, according to Canada’s Globe & Mail newspaper. Alcoa is looking to sell the unit to avoid competition concerns.
Kaiser is among possible suitors, as well as private equity groups.
Alcan’s aerospace unit operations generated record revenue of about $1.5 billion in 2006. Boeing, Europe’s Airbus SAS and Montreal’s Bombardier Inc. are customers.
The prospect of a deal is complicated by potential offers for Alcoa itself. London’s Rio Tinto PLC is said to be looking at buying both Alcoa and Alcan, while Australia’s BHP Billiton Ltd. has plans to offer $40 billion for Alcoa.
Kaiser has yearly sales of about $1.3 billion. The company emerged from a bankruptcy reorganization related to asbestos litigation a year ago.
Decades-old Kaiser shapes aluminum into sheet, rods, pipes and custom pieces for customers, which include aerospace companies, automakers and appliance companies.
The company has a market value of $1.6 million. Shares closed up more than 6% Tuesday.
