LONDON Trimet Aluminium AG has submitted a binding offer to purchase two production plants from Rio Tinto Alcan Inc. in France, the German aluminum company said July 15.
The purchase price for the two aluminum facilities, located in Saint-Jean-de-Maurienne and Castelsarrasin, was not disclosed. The acquisitions will expand Trimets portfolio of specialized light metal products and secure the long-term supply of aluminum oxide and electricity.
The transaction remains subject to approval by regulatory authorities, as well as the implementation of an energy supply agreement and partnership with Electricité de France SA (EDF).
Rio Tinto announced plans to dispose of the sites last year (amm.com, Dec. 12).
The facilities employ more than 500 people and manufacture aluminum wire rod, which is used to make such products as electric cabling for the energy industry and connecting elements for the automotive industry.
"The sites fit in perfectly with Trimets strategic orientation. This applies to the qualified staff as much as to technical standards and the superior products. The terms of the transaction also allow us to envisage reliable, long-term investment plans," Heinz-Peter Schlüter, owner and chairman of the supervisory board of Essen, Germany-based Trimet, said in a statement.
EDF will take a minority stake in the production plants.
A version of this article was first published in AMM sister publication Metal Bulletin.