Oct. 29, 2014
Aleris Divests Recycling, Specification Alloy Businesses
Aluminum maker Aleris, Cleveland, will sell its North American and European recycling and specification alloy businesses to an affiliate of Signature Group Holdings for $525 million. The sale includes 18 production facilities in North America and six in Europe. The company’s decision to divest the businesses followed a strategic review process announced in April.
"The sale of the recycling and specification alloys businesses will result in a stronger, more focused Aleris that will have greater flexibility to concentrate resources in the areas with the highest growth potential," says Steve Demetriou, Aleris chairman and CEO. "We have made a number of significant investments in our rolled products business over the past few years to serve the automotive, aerospace, and building and construction industries, and remain committed to strengthening our position in these key markets."
The company's rolled products business has been the focal point for numerous growth initiatives. Aleris recently announced the expansion of its Lewisport, Ky., facility to serve the global automotive industry, and earlier this year completed the acquisition of Nichols Aluminum, which included four rolled products facilities in North America that serve a variety of industries. Last year, the company unveiled an aerospace plate mill in Zhenjiang, China, and a new automotive facility in Duffel, Belgium.