Novelis Completed Sale of Former Aleris Plant to Alvance

SEATTLE (Scrap Monster): Atlanta headquartered Novelis Inc. announced that it has closed the sale of former Aleris plant in Duffel, Belgium to Alvance- the aluminum business owned by GFG Alliance.

Novelis had closed the acquisition of Aleris earlier this year. One of the conditions put forward by the European Commission and Chinese State Administration for Market Regulation for the deal to proceed was the divestment of the Duffel plant to a third party that meet certain buyer sustainability requirements. Both the market regulators have now approved Alvance as a suitable buyer and have given green signal for the deal to be completed.

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Novelis and Alvance had agreed to acquire the Duffel facility for a sum of $310 million euros. As on September 30^th, 2020, Alvance has paid 210 million euros. Both the parties have reached an agreement on postclosing arbitration process with respect to the payment of the remaining 100 million euros.

The Duffel plant, which employs approximately 1,000 employees, will be renamed as Alvance Aluminum Duffel. The plant has a production capacity of nearly 200,000 tons of aluminum rolled products. Alvance has promised to invest in modernizing the production equipment, which will increase the facility’s production capacity significantly.