ELVAL HELLENIC ALUMINIUM INDUSTRY S.A. and its 99.99% owned subsidiary SYMETAL S.A., hereby announce that their Boards of Directors have decided the separation of the foil production branch of ELVAL S.A. and its absorption by SYMETAL S.A. The contribution and absorption of the branch will be made in accordance with the provisions of articles 1-5 of Law No. 2166/93, and the pertinent Transformation Balance Sheet will be dated 31st October 2007.
The industrial activity of the branch is the production of aluminium foil and its customer base is the flexible packaging industry. The raw material used is aluminium coil, which is processed in special foil rolling mills, in order to further decrease its thickness. The raw material is produced in ELVAL's rolling plant at Oinofyta. The sales of foil products, in the year 2006, represented 24% approx. of the total turnover of ELVAL, S.A. Given that SYMETAL is a 99.99% owned subsidiary of the above company and it is included in its consolidated financial statements through the full consolidation method, the relevant consolidated figures will not be affected.
The separation of the branch in question is to be carried out for reasons related to the internal reorganization of ELVAL and it is aiming at the improvement of the customers' service, the modernization of the branch and, in general, making stronger the company's position in the foil market.
The completion of the separation is subject to the approval of the draft separation / contribution agreement by the Shareholders' General Meetings of the companies involved (ELVAL and SYMETAL), as well as the pertinent approval of the Ministry for Development.