NEWBURGH, Ind. (WEHT) – Alcoa Corporation announced Monday it has agreed to sell its rolling mill business to Kaiser Aluminum Corporation for total consideration of about $670 million, which includes $587 million in cash and the assumption of $83 million in other postretirement employee benefit liabilities, officials announced.
The sale is expected to close by the end of the first quarter of 2021, pending regulatory approval.
The rolling mill is located at Warrick Operations, an integrated aluminum manufacturing site near Evansville. Alcoa will retain ownership of the site’s 269,000 metric ton per year aluminum smelter and its electric generating units. Alcoa will also enter into a ground lease agreement with Kaiser for property that Alcoa will continue to own at the Warrick site.
As part of the transaction, Alcoa will enter into a market-based metal supply agreement with Kaiser Aluminum at closing. Alcoa will continue to operate the smelter and the power plant, which together employ approximately 660 people.
About 1,170 employees at the rolling operations, which includes the casthouse, hot mill, cold mills, and coating and slitting lines, will become employees of Kaiser Aluminum once the transaction is complete. The rolling mill produces approximately 310,000 metric tons of flat rolled aluminum annually for use in packaging, including food containers, aluminum cans, and bottles.
More information about the agreement can be found here.
(This story was originally published on November 30, 2020)
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