GFG Alliance Reaches Agreement to Buy Novelis' Belgium Aluminum Plant

SEATTLE (Scrap Monster): The London-headquartered GFG Alliance owned by Sanjeev Gupta has reached an agreement to buy the Duffel, Belgium aluminium rolling facility from Novelis. The transaction has already received EC approval and is expected to come to a close by Jan 21, 2020. The financial details of the deal were not disclosed.

The purchase of the Duffel plant is the latest in the series of purchases of steel and aluminium assets by GFG Alliance in recent years. It had secured ownership of the Lochaber smelter in Scotland in 2016. Also, it had acquired Europe’s largest aluminium smelter in Dunkirk, France from Rio Tinto Group last year for approximately $55,000.

The company press release by GFG Alliance noted that the deal is consistent with its strategy to create an international, vertically integrated aluminum business. Furthermore, it will help the company boost its bottom line through significant savings in transportation costs.

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The sale will also help Novelis in meeting the conditions set by the European Union towards approval of the Novelis acquisition by Aleris for a sum of $2.6 billion

The acquired Belgian aluminium plant has a production capacity of around 240,000 metric tons of semi-finished aluminium products per annum.