The world’s second largest aluminum company, Aluminum Canada, stated that the company has launched a research and development center in France and is expected to cut costs by 20%. Aluminum, like plastic, is a major material used for food packaging, especially beverage packaging. However, rising energy costs over the past few years have caused suppliers to increase their selling prices in order to maintain their interests. In order to cope with this situation, companies like Alcan Canada have been trying to maintain their competitiveness in the market by cutting costs. The French R&D center is part of the company’s commitment to develop into an efficient, environmentally friendly operation. Michel Jacques, president and chief executive officer of Alcan's primary metal systems, said the company expects the technology will reduce costs by 20%. According to Jacques, “Alcan has always been looking for breakthrough aluminum technology to cope with rising energy costs and meet increasingly urgent environmental requirements. The original intention was to combine existing and emerging technologies and focus on development. More efficient and cleaner smelting technology.†Alcan stated that the company plans to invest 70 million U.S. dollars in the Rhône-Alpes region in 2007. Alcan will focus on two technologies and apply them to all parts of the world. Alcan stated that the company will further strengthen its production technology through the recent acquisition of the Carbone Savoie factory for US$135 million. Carbone Savoie mainly produces and designs cathode blocks. The company stated that the cathode block design is a key factor in determining the performance of the electrolytic cell used in the aluminum electrolysis process. Aluminum packaging is mainly used in the product packaging industry, such as cream packaging, caps and beverage cans. At the end of October, the aluminum price was $2,700/ton, which was twice the amount in 2003. The European Aluminum Foil Association said that aluminum foil shipments reached 660,700 tons in the first 10 months. Heavy gauge demand increased by 5.8% while light gauge demand increased by 2.9%. According to the European Aluminum Foil Association, “The momentum of growth will continue in the coming months and it will also show the strong position of aluminum foil in the current and future packaging market.†According to the European Aluminum Association, output of primary aluminum in Western Europe in April 2006 totaled 340,046 Ton, down 5% from the same period last year. Since December 2005, the production of primary aluminum in Europe has been declining.