Constellium to buy UACJ's 49% stake in Bowling Green aluminium auto body sheet plant

Constellium N.V. announced through a press release on December 11 that it signed an agreement with UACJ Corporation and its U.S. subsidiary, Tri-Arrows Aluminum Holding Inc. (TAAH), to acquire TAAH’s 49% stake in Constellium-UACJ ABS, LLC (CUA). The cost of the acquisition will be US$100 million plus the assumption of 49% of approximately $80 million of third party debt at CUA. CUA operates the Bowling Green Aluminium Auto Body Sheet Plant.

 “This investment will give Constellium greater control over its future development of Auto Body Sheet in North America, a growing market and a strategic focus for our company,” said Jean-Marc Germain, Chief Executive Officer of Constellium.

“We are strengthening our position as a global aluminium supplier for our automotive customers and are looking forward to continuing to serve them in the U.S,” he added.

Under the agreement, Constellium will supply cold coils from its Logan plant in Kentucky to TAAH for up to five years. Constellium’s plant in Muscle Shoals, Alabama is ramping up its Auto Body Sheet capability in order to become Bowling Green’s sole supplier of cold coils.

The deal is expected to close by mid-January 2019 after fulfilling of necessary conditions.

Contellium is positive about is partnership with UACJ, which has helped in the successful ramp-up of the Bowling Green plant and the company hopes to work towards a smooth transition of their customers and employees. The ramp up in Bowling Green’s facility with a capacity of 100,000 tpy is expected to be complete in 2020. The plant supplies advanced 5xxx and 6xxx aluminium alloys and coils and sheets for closures inners, outers and body-in-white applications.