Aleris International Inc., a producer of aluminum sheet, extrusions, and various other products, has an agreement to sell its U.S. Zinc subsidiary to affiliates of Votorantim Metais Ltda. for $295 million. The final price is subject to approvals and closing conditions.
Votorantim is a Brazilian mining and steelmaking group, with mines in Brazil and Peru producing zinc and nickel. It is reportedly the largest zinc producer in Latin America with output reaching 400,000 tons/year; nickel output is listed at about 26,000 tons/year.
U.S. Zinc is arranged as five divisions: the Zinc Oxide division is one of the world’s largest manufacturers of zinc oxide, with two U.S. locations where it manufactures zinc oxide from high-grade and special high-grade zinc metal, as well as from secondary zinc; the Zinc Metal division in Houston recycles secondary zinc, supplying the galvanizing industry. The other divisions are a trading arm, a zinc-dust manufacturing unit, and IZI, a recycler of zinc collected from continuous galvanizing dross
In addition to its six U.S. locations, U.S. Zinc operates a new zinc-oxide plant near Shanghai.
"The sale of US Zinc will allow Aleris to focus on our core aluminum business,” stated Aleris chairman and CEO Steven J. Demetriou. “We plan to use the net sale proceeds to reduce leverage. I would like to thank the US Zinc team for their significant contributions to Aleris."
Aleris Selling US Zinc for $295 Million
Buyer is Latin Americas largest zinc manufacturer