Alcoa's Avilés and La Coruña Aluminum Plants Sold to PARTER Capital Group

SEATTLE (Scrap Monster): Alcoa Corporation announced completion of sale of Avilés and La Coruña aluminum plants in Spain, owned by  its subsidiary to Switzerland-based private equity firm PARTER Capital Group AG. A conditional share purchase agreement was signed between the two parties in July this year. 

According to the deal, the acquired Alcoa assets include casthouses at both the plants and the paste plant at La Coruña aluminum plant, which are in operation currently. In addition, the deal also covers the curtailed smelters at both plants. As per the terms of the agreement, PARTER Capital Group will maintain the combined workforce of approximately 630 employees at the plants for a minimum period of two years. Furthermore, it has proposed reindustrialization projects for both sites. A potential restart of both the idled smelters, with a combined operating capacity of 124,000 metric tons per year, is also under PARTER Capital Group’s agenda, sources said.

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Timothy Reyes, Executive Vice President and President, Aluminum noted that the acquisition offers continued employment to workforce and ongoing industrial activity to the local community. He thanked the central government, the governments of Asturias and Galicia and workers’ representatives for their strong support throughout the process.

The charges pertaining to these dispositions at nearly $135 million will be recorded by Alcoa in the third quarter of 2019. Related outlays are estimated at around $115 million over the next two-year period.