Aleris Acquiring Selected Ormet Facilities

Aleris International, Inc. has entered into an agreement with Ormet to purchase selected assets within the Hannibal Rolling Mill, as well as the operating facilities associated with the Bens Run recycling facility located in Friendly, W.V., and Specialty Blanks Inc., Terre Haute, Ind. The purchase price of $133 million is subject to adjustment based upon the level of accounts receivable and inventory over or under $90 million at closing.

Ormet has announced that they will cease operations at the Hannibal Rolling Mill, which will occur prior to closing. Aleris will transfer selected equipment and anticipates an increase of 125 million pounds of production at its other rolling mills.

Steve Demetriou, Aleris chairman and CEO, said, "This is another key strategic step aimed at optimizing our aluminum sheet production assets. The additional volume will allow Aleris to maximize throughput at our other rolling mills and more efficiently utilize our fixed cost base, making us more cost competitive on a global basis."