Real Alloy to close Wisconsin plant

Beachwood, Ohio-based recycled-content aluminum producer Real Alloy, which filed for bankruptcy in November 2017, is shuttering its melt shop in Mount Pleasant, Wisconsin.

The company issued an update on its bankruptcy reorganization on Jan. 18, 2018, that states in part, “As part of the company’s continued focus on rationalizing costs and improving efficiency, Real Alloy [will] cease operations at its Mount Pleasant facility, which was acquired from Beck Aluminum at the end of 2016.”

The statement continues, “Real Alloy expects to utilize available production capacity in nearby Indiana and Michigan facilities, and feels that shutting down the facility allows the business to better utilize production capacity and reduce overall capital needs.”

In other news pertaining to its reorganization, the company has indicated it has received additional DIP (debtor-in-possession) financing that “allows Real Alloy to continue uninterrupted operations throughout the reorganization process, giving Real Alloy the authority to make payments to suppliers and service providers as well as to continue to pay employees wages, salaries and benefits.”

The company’s managers have also reported that “since the filing of Chapter 11 in November 2017, Real Alloy has successfully negotiated contracts for 2018 production with several longstanding customers including major multinational automobile manufacturers and large-scale aluminum producers. The Company’s average tenure on its relationship with these customers is over 20 years. Real Alloy has continued to work closely with its suppliers and critical vendors throughout this restructuring process, and has received strong support from customers and vendors alike.”