Wise Alloys
MUSCLE SHOALS – Constellium N.V. (NYSE and NYSE Euronext: CSTM) announced that it has completed its previously announced acquisition of Wise Metals Intermediate Holdings LLC (“Wise”), in Muscle Shoals. With the closing of the acquisition, Constellium now has access to 450,000 metric tons (kt) of hot mill capacity from the widest strip mill in North America, reinforcing its position on the can market and positioning Constellium to continue to grow in the North American Body-in-White (BiW) market.
“This acquisition is a key milestone for Constellium that will allow our Company to provide greater sustainable value to our customers globally,” commented Pierre Vareille, Chief Executive Officer of Constellium. “It enhances Constellium’s global footprint and offering by increasing the Company’s exposure to the North American market and supplementing Constellium’s leading position in Europe. Constellium expects to benefit from increased product development resources and technological capabilities, wider global reach and greater operational flexibility.”
Constellium intends to invest up to $750 million in its Muscle Shoals plant by 2022 in order to significantly accelerate its development in the North American BiW market, complementing Constellium’s existing projects both in the United States and Europe.
Wise’s 2013 EBITDA level is expected to quadruple once facility upgrades are completed and capacity is filled, driven by the addition of BiW production.
The acquisition was announced by Constellium and Wise last October. With this acquisition and facility expansion at the Muscle Shoals plant, there is an expected substantial increase in full-time jobs. Currently, Wise Metals employs 1,400 workers.
