Rio Tinto Alcan sells automotive diecasting units for undisclosed amount.
The move came fewer than two weeks after mining group Rio Tinto, London, completed an acquisition of Alcan, Montreal, and formed Rio Tinto Alcan. One of the terms of the deal was that Rio Tinto would maintain Alcan's business within Canada.
The Alcan Tomos facility, of which Rio Tinto Alcan owned 67%, produces aluminum die castings, which are distributed to European automotive customers through the wholly-owned Alcan Koper office. Both operations have been sold to Slovenia-based Hidria Rotomatika d.o.o. Details of the transaction were not disclosed.
"Over a year ago, Alcan began a strategic review of the diecasting activity," said Christel Bories, president and CEO of the Engineered Products Division of Rio Tinto Alcan. "After evaluating all options, it was determined that the size and potential of this activity is no longer consistent with our Engineered Products' portfolio of businesses."
Bories said she expects Hidria to continue operating the diecasting businesses as usual.
"As a part of its focused strategy, Hidria is becoming a European leader in automotive components for steering and powertrain, among which sophisticated high-pressure diecast and machined aluminum parts are playing an important role," said Iztok Seljak, vice president of Hidria.
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|Title Annotation:||Around the World|
|Date:||Dec 1, 2007|
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