Constellium N.V. (NYSE:CSTM) (Euronext Paris:CSTM) today announced that it signed a binding agreement with Novelis to sell the North Building Assets of its Sierre plant in Switzerland, which have been leased and operated by Novelis since 2005, and to contribute the plant’s shared infrastructure to a 50-50 joint venture with Novelis. Constellium and Novelis agreed on a total purchase price for the transactions of €200 million.
Constellium will continue to own and operate its cast houses, plate and extrusion manufacturing plants and other manufacturing assets at Sierre. As part of this agreement, Constellium and Novelis also agreed to enter into long-term production and metal supply agreements.
Commenting on the transaction, Jean-Marc Germain, CEO of Constellium said: “We are pleased with this mutually beneficial outcome. We remain focused on serving our customers, executing our strategy and enhancing financial flexibility.”
Lionel Thomas, plant Director of Constellium Valais said: “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.”
Constellium and Novelis have agreed to suspend the arbitration proceedings on the Sierre facility dispute until closing of this transaction, which is expected second quarter 2018 and subject to customary closing conditions.
About Constellium
Constellium (NYSE:CSTM) (Euronext Paris:CSTM) is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated €4.7 billion of revenue in 2016.
Article Source: globenewswire.com