Pittsburgh Aluminum Maker Announces Sale of Rolling Mill Business Located at Warrick Operations

SEATTLE (Scrap Monster): Pittsburgh-based Alcoa Corporation announced that it has reached an agreement to sell its rolling mill business located at Warrick Operations to Kaiser Aluminum Corporation.

The agreement has been reached for total consideration of approximately $670 million, which includes $587 million in cash and the assumption of $83 million in OPEB liabilities. The sale is subject to regulatory approvals and customary closing conditions, and is expected to close by the end of Q1 2021.

RELATED NEWS:

Alcoa Announces Curtailment and Collective Dismissal at Smelter

Alcoa Unveiled New Low-Carbon, Smelter-Grade Alumina Brand

As per agreement, Alcoa will retain ownership of 269,000 metric ton per year aluminum smelter and its electric generating units at the site near Evansville, Indiana. In addition, Alcoa will also sign a ground lease agreement with Kaiser, towards continuation of ownership rights of the Warrick site. Also, Alcoa will continue to operate the smelter and the power plant.

The sale deal will help Alcoa to reach the previously announced goal of generating between $500 million and $1 billion in cash through the sale of non-core assets. It must be noted that the company had announced sale of its Gum Springs, Arkansas waste treatment business earlier this year.

Roy Harvey, President and CEO, Alcoa noted that the company looks forward to having Kaiser Aluminum as a valued customer at Warrick Operations.