Amsterdam rolled and extruded aluminium leader Constellium N.V. announced yesterday the signing of a binding purchase agreement with UACJ Corporation and Tri-Arrows Aluminum Holding Inc. (TAAH), its United States affiliate, to buy TAAH’s 49-percent ownership of Constellium-UACJ ABS, LLC (CUA) for US$100 million while assuming 49 percent of CUA’s third-party debt.
Per the firm, the deal in question also includes an agreement by TAAH to provide cold coils to Constellium for five years, with the contracted supply to be sourced from TAAH’s plant in Logan, Kentucky. Meanwhile, Constellium’s Muscle Shoals, Alabama plant will continue to increase Auto Body Sheet substrate production in order to be the Bowling Green’s operations’ exclusive source of cold coils.
Jean-Marc Germain, Chief Executive Officer of Constellium, hailed the move as another step by the company to shore up market share in the automotive aluminium sector.
“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. 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.”
“I want to warmly thank UACJ for partnering with us and for its contribution to the successful ramp-up of the Bowling Green plant,” Germain continued. “We are looking forward to continuing to work with UACJ to ensure a smooth transition for our customers and employees.”
Constellium, based in Amsterdam, was founded 1855 as Henri Merle et Compagnie and subsequently renamed Pechiney in 1950. Pechiney was purchased by Alcan in 2003, which was purchased by Rio Tinto in 2007. In 2011 Rio Tinto sold Alcan Engineered Products to Apollo Management (51%) and FSI (10%). Constellium produces rolled and extruded aluminium products from various alloys, bringing in €5.2 billion of revenue in 2017.
Correction: The story has been updated to reflect the fact that TAAH will provide cold coils to Constellium.