Novelis has completed the transaction for its joint venture with Kobe Steel, Ltd., a producer of aluminum rolled products in Japan. The joint venture, Ulsan Aluminum, Ltd., was formed by Novelis selling Kobe Steel its ownership interest in its Ulsan, South Korea facility for $315 million.
Novelis and Kobe Steel together own the Ulsan Aluminum, Ltd. facility, with each company remaining responsible for its own metal supply and commercial relationships.
The Ulsan Aluminum plant is strategically located in the industrial hub of Ulsan, South Korea to support the increasing demand for high-strength and lightweight aluminum for automotive and specialty products including electronics and building materials in Asia. The plant recently completed a major expansion, adding a new three-stand hot finishing mill, as well as a pusher furnace and annealing furnaces. All 600 employees at the plant are now employed by Ulsan Aluminum. In addition, the transaction will generate cash proceeds to enhance Novelis’ strategic flexibility and reduce its net debt.
Published in the November 2017 Edition of American Recycler News