Alcan Inc. plans to take over a Salvation Army sanctuary that sits next to its head office in downtown Montreal and integrate the building into its new global headquarters.

The three-year, $50-million US project is seen as a shot in the arm for the City of Montreal. The modernized complex will house nearly 800 headquarters staff and provide a boost for the nearby shops.

Alcan workers pour molten aluminum.

Alcan announced the construction project Monday at a ceremony that was attended by a host of notables that included Quebec Premier Jean Charest, Montreal Mayor Gerald Tremblay and Col. Glen Shepherd, chief secretary of the Salvation Army for Canada.

Dick Evans, Alcan's president and chief executive officer, told guests that Alcan plans to consolidate its head office operations in the existing Maison Alcan headquarters and the Salvation Army building next door.

"Alcan's plan to consolidate its global headquarters, in a cost-effective manner, into a more modern, efficient campus, recognizes the company's growth over the past five years and allows flexibility for future growth," Evans said. "It reaffirms the long-standing partnership Alcan has historically enjoyed with Montreal, the company's home for more than 80 years."

The Salvation Army sanctuary and administrative building became available when the religious-based charity decided to sell the facility and move elsewhere in Montreal. That suited Alcan, a company that has been considering a move to a new headquarters.

"The decision to expand and modernize our existing home made sense logistically and financially, although other alternatives were taken into consideration, including the relocation of Alcan's head office to another location in the Montreal area," Evans said.

The combined site will contain nearly 300,000 square feet of office space, making it one of the larger office buildings in Montreal. Alcan is planning a leading edge office that will set the mark for innovation, energy conservation and environmental design.

Alcan is one of the biggest aluminum companies in the world, with 65,000 staff in 61 countries and revenue of $20.3 billion US in 2005.