Constellium Agrees to Sale of Leased Assets At Sierre Plant to Novelis
02 February 2018 by Staff
Amsterdam rolled and extruded aluminium leader Constellium N.V. and Atlanta’s rolled and recycled aluminium firm Novelis Inc. both announced yesterday a plan for Constellium to sell a portion of its operations at Sierre in the Swiss Alps to Novelis for €200 million (US$250 million).
The deal will have Constellium transferring ownership of the North Building Assets to Novelis, which has been leased and operated by Novelis for over a dozen years. Constellium has also pledged to pitch in on the plant’s shared infrastructure, equally dividing the duties with Novelis.
Constellium indicates that it will continue to run cast houses, plate and extrusion manufacturing plants, and other manufacturing assets on site. The duo will also begin work forging long-term production and metal-supply agreements in the near future.
The Sierre facility has been a major supplier of sheet aluminium for Europe’s automotive industry for two decades. The site features a fully-integrated system that runs through casting to finishing. Sierre’s casthouse is equipped to cast both standard single alloys as well as multi-alloy ingots, and it operates a cutting-edge automotive sheet annealing line and laser cutting facilities.
“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,” opined Novelis’ President and Chief Executive Officer Steve Fisher.
“We are pleased with this mutually beneficial outcome,” commented Jean-Marc Germain, CEO of Constellium. “We remain focused on serving our customers, executing our strategy and enhancing financial flexibility.”
“We are looking forward to a renewed partnership with Novelis in Sierre,” said Lionel Thomas, plant Director of Constellium Valais. “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.”
The deal means the two firms will suspend ongoing arbitration talks over the site. Both parties expect the deal to close later this coming spring.