American value-added aluminium firm Arconic announced on Monday a deal to sell its rolling mill in Texarkana, Texas to an American subsidiary of the Republic of China’s Ta Chen Stainless Pipe Co., Ltd. (TCI).
Per Arconic’s press release, the sale, which is to TCI’s subsidiary Ta Chen International, Inc., will be in consideration of a cash payment of US$300 million, plus additional contingent consideration of up to US$50 million. Assuming no regulatory or other impediments, Arconic projects the sale to be completed by the end of the current quarter, with Arconic planning on a record gain on the transaction. No further details were supplied by either firm by press time.
Tim Myers, President of Arconic’s Global Rolled Products and Transportation and Construction Solutions segments, lauded the sale as a win for all parties involved.
“The strong market conditions for industrial products gave us an opportunity to sell an asset that has been idled for several years. This is a positive development for the dedicated workforce at Texarkana, and it helps our business as we continue to explore opportunities to enhance our portfolio.”
The Texarkana plant, which boasts a workforce of around 90 individuals, is part of Arconic’s Global Rolled Products segment. The plant produces aluminium sheet and plate products for the aerospace, automotive, commercial transportation, brazing, and industrial markets.
TCI produces stainless, aluminium and nickel alloy coils, sheets, plates, long products, tubes, and polyvinyl fluoride (PVF) to a client base of around 3,000 companies from its dozen warehouses located throughout North America. The firm also operates several subsidiaries, including Empire Resources, Inc., Galex Inc., Primus Pipe & Tube, TCI Investment Group, and Sunland Shutters.