Arconic Sells Venetian Rolling Mill to Italy’s Slim Aluminium
09 April 2017 by Staff
Value-added aluminium manufacturer Arconic Inc. announced the sale of its rolling mill in Fusina, Italy to Italy’s Slim Aluminium SpA on Thursday.
According to the relevant press release from Arconic, the sale of the plant, which is located on the outskirts of Venice in northeastern Italy’s Veneto region, comes after a thorough review process and is the product of Arconic’s Global Rolled Products’ (GRP) push to move the business from commodity production to the manufacture of high-margin aerospace and automotive products.
The sale is expected to result in restructuring-related losses of US$60 million after taxes, which the firm says will be reflected on first-quarter results. Such expenses mostly involve a non-cash impairment of the business’s net-book value and the infusion of US$10 million in cash in the mill immediately prior to its sale.
Arconic says its GRP segment has boosted its adjusted EBITDA margin by almost nine hundred basis points, leading to an increase from three percent in 2008 to 11.9 percent last year. The firm chalks up the gains to portfolio optimization, manufacturing excellence, and commercializing innovations.
The purchaser is a rolling-mill business based in Italy. It boasts a nameplate capacity of 92 thousand metric tons of aluminium foil, coils, sheets, circles, and shaped blanks per year. It is owned by funds managed by Quantum Capital Partners GmbH, which is a Munich-based investment company founded in 2008.