Author: Paul Ploumis
24 Oct 2014 Last updated at 05:53:34 GMT
WASHINGTON (Scrap Monster): Century Aluminum, a Chicago based aluminum company, announced that the company would buy the 50.3 percent of the stake owned by Alco, for 67.5 billion dollars. The plant is about 34 years old, and recently the company, Alco, was having talks with Santtee Cooper, the power providing company for the plants, for cutting the cost of the power.
The deal would be closed by this quarter and by then Century aluminum would become the 100 percent owner of the pant. The aluminum plant employs about 600 workers and also posses an annual production of about 229,000 tonnes of aluminum.
The president of Alcoa Global Primary Products, Bob wilt stated that, the plant at Mount Holley is a very much strong facility, but at the same time, the cost structure of the plant, does not promote the low cost production agenda of Alcoa. The decision would both keep the agenda of the company stern and at the same time will continue to provide economic stability for the employees and also the local community.
According to the deal between both the companies, sale terms for 67.5 billion in cash, and there is also a chance of earning out payments, if the plant hits profit.