Aleris International Inc. of Beachwood, Ohio, plans to sell its aluminum extrusions business to Sankyo Tateyama Inc. in Japan.
The company told Crain’s Cleveland Business that it signed a definitive agreement with the building products and extrusions maker to sell four locations in Europe and one in China that “specialize in the production of medium and hard alloy extrusions, serving the rail, automotive and aerospace industries,” according to a Dec. 18 news release.
Aleris said Sankyo Tateyama has agreed to pay 35.5 million Euros, or about $43.6 million at today’s exchange rate, and assume about 46 million Euros, or $56.5 million of pension liabilities. The sale is expected to close in the first quarter of 2015.
The 3-month price of aluminum saw a 0.8% drop on the LME on Thursday, December 18, landing at $1,893 per metric ton and making it the biggest mover of the day. The Indian aluminum cash price fell 0.7% to INR 121.55 ($1.93) per kilogram. The cash price of primary aluminum saw a 0.6% decline on the LME to $1,863 per metric ton.
Chinese aluminum prices were mixed for the day. The cash price of Chinese aluminum declined 0.8% to CNY 13,130 ($2,113) per metric ton. Chinese aluminum bar saw its price drop 0.8% to a 30-day low of CNY 13,140 ($2,115) per metric ton on Thursday. Chinese aluminum scrap stayed flat at around CNY 12,900 ($2,076) per metric ton. The price of Chinese aluminum billet held steady at CNY 13,700 ($2,205) per metric ton.