Both Constellium N.V. and Novelis Inc. have announced through press release that they signed a binding agreement to sale and acquire operating facilities and manufacturing assets at its Sierre plant that have historically been leased. The North Building Assets of Constellium’s Sierre plant in Switzerland have been leased and operated by Novelis since 2005 and Constellium and Novelis agreed on a purchase price of €200 million.
The acquisition will allow Novelis to gain additional flexibility to continue serving the growing automotive aluminium sheet market and provide a more secure and stable future for its stakeholders. The acquisition is expected to close in the first quarter of fiscal 2019, subject to customary closing conditions.
"This acquisition further solidifies our leadership position in the automotive aluminum sheet market and provides us with the strategic flexibility to evaluate future growth opportunities in Europe," said Steve Fisher, President and Chief Executive Officer, Novelis, Inc.
Jean-Marc Germain, CEO of Constellium expressed his pleasure with this mutually beneficial outcome of the transaction.
Lionel Thomas, plant Director of Constellium Valais said: “We are looking forward to a renewed partnership with Novelis in Sierre. We expect this agreement to allow for a more sustainable and efficient collaboration between Constellium and Novelis, and thus to benefit our companies, and the local community in which we both operate.”
Under the binding agreement, Constellium will contribute to the shared infrastructure of the entire Sierre facility in a 50-50 joint venture with Novelis, which will provide an efficient, long-term solution for smooth operation in the plant. While Constellium will continue to own and operate its cast houses, plate, and extrusion manufacturing plants, Novelis will retain its Research and Technology Center there in order to offer technical and R&D support to its customers. This will be a win win situation for both the companies.
Novelis' Sierre plant has been producing and supplying aluminium sheet for the automotive market for more than 20 years from a leading location in Europe. Novelis maintains an integrated process system in the plant from casting to finishing. The casthouse is capable of casting standard single alloys as well as multi-alloy ingots. The plant operates hot and cold rolling mills, a state-of-the-art continuous annealing line for automotive sheet and laser cutting capability.
Constellium and Novelis have agreed to suspend the arbitration proceedings on the Sierre facility dispute until closing of this transaction, which is expected second quarter 2018 and subject to customary closing conditions.
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