Constellium to purchase UACJ’s Stake in Auto Body Sheet Joint Venture in Bowling Green, Kentucky
December 11 2018 - 5:00AM
Constellium to purchase UACJ’s Stake in Auto Body Sheet Joint
Venture in Bowling Green, Kentucky
Constellium N.V. (NYSE: CSTM) announced today that it entered into
a binding purchase agreement with UACJ Corporation and its U.S.
subsidiary, Tri-Arrows Aluminum Holding Inc. (TAAH), to acquire
TAAH’s 49% stake in Constellium-UACJ ABS, LLC (CUA), for $100
million plus the assumption of 49% of approximately $80 million of
third party debt at CUA.
As part of this agreement, 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.
“This investment will give Constellium greater
control over its future development of Auto Body Sheet in North
America, a growing market and a strategic focus for our company,”
said Jean-Marc Germain, Chief Executive Officer of Constellium. “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 U.S.”
Jean-Marc Germain added: “I want to warmly thank
UACJ for partnering with us and for its contribution to the
successful ramp-up of the Bowling Green plant. We are looking
forward to continuing to work with UACJ to ensure a smooth
transition for our customers and employees.”
With a capacity of 100,000 metric tons, Bowling
Green’s facility is expected to reach full production in 2020. The
plant supplies advanced 5xxx and 6xxx alloys and provides coils and
sheets for closures inners, outers and body-in-white.
The deal is expected to close by mid-January
2019 and is subject to customary closing conditions.
About Constellium
Constellium (NYSE: CSTM) is a global sector
leader that develops innovative, value added aluminium products for
a broad scope of markets and applications, including automotive,
aerospace and packaging. Constellium generated €5.2 billion of
revenue in 2017. www.constellium.com
Forward-looking statements
Certain statements contained in this press
release may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
This press release may contain “forward-looking statements” with
respect to our business, results of operations and financial
condition, and our expectations or beliefs concerning future events
and conditions. You can identify forward-looking statements because
they contain words such as, but not limited to, “believes,”
“expects,” “may,” “should,” “approximately,” “anticipates,”
“estimates,” “intends,” “plans,” “targets,” likely,” “will,”
“would,” “could” and similar expressions (or the negative of these
terminologies or expressions). All forward-looking statements
involve risks and uncertainties. Many risks and uncertainties are
inherent in our industry and markets. Others are more specific to
our business and operations. These risks and uncertainties include,
but are not limited to, economic downturn, the loss of key
customers, suppliers or other business relationships; disruption to
business operations; the inability to meet customer quality
requirements; delayed readiness for the North American Auto Body
Sheet market, the capacity and effectiveness of our hedging policy
activities, failure to retain key employees, and other risk factors
set forth under the heading “Risk Factors” in our Annual Report on
Form 20-F, and as described from time to time in subsequent reports
filed with the U.S. Securities and Exchange Commission. The
occurrence of the events described and the achievement of the
expected results depend on many events, some or all of which are
not predictable or within our control. Consequently, actual results
may differ materially from the forward-looking statements contained
in this press release. We undertake no obligation to update or
revise any forward-looking statement as a result of new
information, future events or otherwise, except as required by
law.
Delphine Dahan-Kocher –
Communications, NAPhone: +1 (443) 420
7860delphine.dahan-kocher@constellium.com
Ryan Wentling – Investor
Relations Phone: +1 (212) 675
5450Investor-relations@constellium.com
Noemie Fierens – Communications,
Europe Phone: +33 (0)1 73 01 41
84noemie.fierens@constellium.com
Michela Aragno –
Communications, Packaging & Automotive Rolled
ProductsPhone: +41 44 438 67 51michela.aragno@constellium.com
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