by: Alex Brown, Inside INdiana Business
Posted: Apr 1, 2021 / 4:33 PM EST / Updated: April 1, 2021 / 4:34 PM EST
NEWBURGH, IND. (Inside INdiana Business) – Pittsburgh-based Alcoa Corp. (NYSE: AA) has completed the sale of its Newburgh rolling mill business. The deal with Kaiser Aluminum Corp. (Nasdaq: KALU) in California is valued at $ 670 million.
Plans for the sale were first announced in December. Officials said that when the deal was closed, the plant’s 1,170 employees would become Kaiser employees.
Under the agreement, Alcoa will retain ownership of the on-site smelting and power generation facilities, which employ approximately 660 people. Alcoa will continue to own the property and has signed a long-term lease with Kaiser.
The rolling mill produces around 310,000 tons of flat-rolled aluminum for the packaging industry every year. In addition, Alcoa has signed a market-based metal supply and interim service agreement with Kaiser.