Constellium has entered into a binding purchase agreement with UACJ and its US subsidiary, Tri-Arrows Aluminium Holding (TAAH), to acquire TAAH’s 49% stake in Constellium-UACJ AB (CUA), for US$100m plus the assumption of 49% of around US$80m of third-party debt at CUA.
As part of the deal, Constellium contracted with TAAH for the supply of cold coils from its Logan plant in Kentucky for up to five years. Constellium’s plant in Muscle Shoals, Alabama, will continue to ramp-up its auto body sheet substrate capability to gradually become Bowling Green’s sole supplier of cold coils.
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“This investment will give Constellium greater control over its future development of auto body sheet in North America, a growing market and a focus for our company,” said Constellium CEO, Jean-Marc Germain.
“We are strengthening our position as a global aluminium supplier for our automotive customers and are looking forward to continuing to serve them in the US.”
With a capacity of 100,000 metric tons, Bowling Green’s facility is expected to reach full production in 2020. The plant supplies 5xxx and 6xxx alloys and provides coils and sheets for closures inners, outers and body-in-white.
The deal is expected to finalise by mid-January 2019 and is subject to customary closing conditions.
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