Your Location > Home > News & Market >International News > Alcoa agrees to sell majority interest in S Carolina aluminium smelter
Today' Focus
-
Hangzhou Jinjiang Group's general manager Zhang Jianyang, vice general manager Sun Jiabin and their team had attended the SECOND BELT AND ROAD FORUM FOR INTERNATIONAL COOPERATION, they also attended the signing ceremony of comprehensive strateg...
International News
Domestic News
International News
Alcoa agrees to sell majority interest in S Carolina aluminium smelter
- China Aluminium Network
- Post Time: 2014/10/24
- Click Amount: 382
TORONTO (miningweekly.com) – Alcoa on Thursday announced that it had agreed to sell its 50.3% stake in the Mt Holly aluminium smelter, in Goose Creek, South Carolina, to 49.7%-partner Century Aluminium, further trimming its primary aluminium production capacity as part of efforts to establish a low-cost portfolio of smelters.
The US-based integrated aluminium specialty products manufacturer, which was increasingly strategically focusing on light-weight specialty alloys for the automotive and aerospace industries, said that Century would pay $67.5-million in cash, including an additional potential earn-out.
“While Mt Holly is a strong facility, its cost structure doesn’t match Alcoa’s criteria for a low-cost portfolio of upstream assets. The sale will help achieve Alcoa’s strategy to optimise its commodity portfolio, and protect the facility’s jobs and economic contribution to the local community,” Alcoa Global Primary Products president Bob Wilt said.
The smelter has the capacity to produce 229 000 metric tons of aluminium a year and employs 500 people who would transition to Century as part of the sale. The current power contract for the site expires in December 2015. The divestiture would reduce Alcoa’s global smelting capacity to 3.5-million tons a year.
The sale was subject to customary regulatory approvals, and was expected to close by the end of the fourth quarter. Based on current estimates, the transaction would not result in a significant gain or loss to Alcoa.
The sale was aligned with Alcoa’s strategy to create a globally competitive commodity business and lower its position on the world aluminium production cost curve to the 38th percentile by 2016.
Including this latest announcement, Alcoa had curtailed, closed or sold 1.3-million metric tons, or 31%, of its highest-cost global smelting capacity since 2007.
- Copyright and Exemption Declaration :①All articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China
Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China
Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this.
②Articles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or
accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the
articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey
this.
③If any articles copied by our website concern the copyright and other problems, please contact us within one week.