Atlanta-based Novelis has signed an agreement with Constellium N.V. to acquire the north building assets of the Sierre plant in Switzerland for €200 million ($250 million). That part of the plant had been leased and operated by Novelis since 2005.
With locations in 10 countries, Novelis is one of the largest producers of flat-rolled aluminum products and describes itself as the world’s largest recycler of aluminum. Constellium, with 24 manufacturing sites, designs and manufactures aluminum products primarily to the aerospace, automotive and packaging markets.
Constellium will continue to own and operate its cast houses, plate and extrusion manufacturing plants and other manufacturing assets at its Sierre location. As part of the agreement, Constellium and Novelis have agreed to enter into long-term production and metal supply agreements.
“We are pleased with this mutually beneficial outcome,” says Jean-Marc Germain, CEO of Constellium. “We remain focused on serving our customers, executing our strategy and enhancing financial flexibility.”
Lionel Thomas, Constellium Valais, Switzerland, region plant director, comments, “We are looking forward to a renewed partnership with Novelis in Sierre. 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 Sierre facility features an integrated system covering a process that includes casting single-alloy and multialloy ingots to finishing. In addition to hot and cold rolling mills, the plant operates a continuous annealing line and has laser cutting capabilities.