RE: SGF and Reybnolds Will Form a Joint Venture to Operate Cap-de-la-Madeleine Mill.MONTREAL--(BUSINESS WIRE)--July 8, 1997--Societe generale de financement du Quebec (SGF SGF Svenska Golfförbundet (Swedish Golf Federation) SGF Société Générale de Financement (Quebec, Canada) SGF Smart Game Format SGF Simulated Gastric Fluid ) and Reynolds Metals Reynolds Metals Company (RMC) was the second largest aluminum company in the United States, and the third largest in the world. The company became well-known for the consumer product Reynolds Wrap as well as being a leader in developing and promoting new uses for aluminum; Company announce that they have agreed in principle to form a joint venture to operate Reynolds' rolling mill rolling mill: see steel. in Cap-de-la-Madeleine, Quebec Cap-de-la-Madeleine is a former city in Quebec, Canada at the confluence of the Saint-Maurice River and the St. Lawrence River. It was amalgamated into the City of Trois-Rivières in 2002. Population (2001 census) 32,534. , and its Weston Road For the portion of Weston Road in York Region, Ontario, see . Weston Road is a north-south street in west end Toronto, Ontario, Canada. The route is named for the former Village of Weston, which was located near Weston Road and Lawrence Avenue West. , Toronto, Ontario, coil coating facility. Reynolds and SGF each would have a 50 percent interest in the joint venture. The rolling mill is a leader in the rapidly growing market for aluminum brazing brazing, method of joining metal parts using nonferrous filler metals with high melting points such as copper, silver, and aluminum alloys. Brazing differs from soldering (see solder) by using a higher temperature; and unlike welding, the parts are not melted. and plain finstock used in automotive air conditioning and radiators, as well as aluminum foil for the packaging industry. The mill also produces building sheet, utensil coil and other industrial aluminum products. The plant employs approximately 700 people. The Weston Road facility is a specialized custom coater of aluminum coil and employs approximately 50 people. SGF's investment in the joint venture will provide the basis for a major capital program at the rolling mill aimed at increasing slab homogenizing capacity, coil size and quality, and light gauge rolling and finishing capacity. The joint venture will obtain independent bank financing and will be independently managed, with Reynolds and SGF having equal representation on its board. "The focus of the alliance will be to operate the existing business, implement an expansion of the rolling mill, and develop opportunities for profitable growth in value-added markets," said Jeremiah J. Sheehan, Reynolds chairman and chief executive officer. Speaking on behalf of SGF, Chairman, President and Chief Executive Officer Claude Blanchet said that the investment "was fully in line with our plans to redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. our efforts into secondary aluminum transformation, which has high added value. Through our investments in Neuman, Intral and Phillips-Fitel, we are already present in the aluminum extrusion and aluminum cable manufacturing sectors. With this new joint venture, we will also be involved in rolling operations." Completion of the transaction is subject to due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , negotiation and execution of definitive agreements, obtaining financing, and board approvals as required by the respective organizations. Completion is anticipated to occur in the third quarter. Financial terms of the transaction were not disclosed. The mission of SGF is to carry out, in cooperation with partners and in accordance with accepted requirements of profitability, economic development projects, in particular in the industrial sector, in conformity with the economic development policy of the Government of Quebec. Its activities range from natural resources-related industries to high-technology sectors. CONTACT: Societe Generale de Financement du Quebec Andre Roy, 514/ 876-9290 or Bazin Larouche Sormany Vigneault Daniel Larouche, 514/ 282-1100 |
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