Aleris to Close California Rolling Mill

Aleris International Inc., headquartered in Beachwood, Ohio, has announced that it has concluded an evaluation of potentially redundant manufacturing facilities related to the recently completed ALSCO acquisition and will be permanently closing and dismantling its Carson, Calif., rolling mill and coil coating facility. Production will be phased out during the first quarter of 2006 and the site will be closed shortly thereafter.

"Process limitations at this facility and a related unfavorable cost structure have led us to conclude that continued operation of Carson is not justified," John Wasz, president of Aleris Rolled Products, says. "We will serve our West Coast customers from our other production facilities. In addition, this decision will allow us to capture a substantial portion of the $12 million of synergies on an annualized basis, announced with the ALSCO acquisition," Wasz says.

Aleris has approximately 163 employees at the Carson facility, which supplies semi-fabricated aluminum coil and painted coil for building and construction, consumer durables and electrical applications. Aleris estimates the closure will result in restructuring charges related to asset impairments, employee termination benefits and other costs ranging from $23 million to $25 million in the fourth quarter of 2005 and $3 million to $5 million in 2006.

Aleris International is a major North American manufacturer of rolled aluminum products and a global leader in aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products, including zinc oxide, zinc dust and zinc metal. Aleris operates
33 production facilities in the United States, Brazil, Germany, Mexico and Wales. It employs approximately 4,000.