Rio to sell aluminium smelter for US$500 million

Rio Tinto receives a binding offer for Aluminium Dunkerque from Liberty House

Rio Tinto receives a binding offer for Aluminium Dunkerque from Liberty House

Liberty House, the industrial arm of GFG Alliance, a London-based worldwide group of businesses, has made a binding conditional offer to Rio Tinto to buy Europe's largest aluminium smelter based in Dunkerque, France.

The firm plans to develop manufacturing activities linked with the smelter and to create thousands more jobs by investing in and developing the 570-worker plant.

Rio will launch a consultation process with employees, relevant European works councils and other stakeholders, and expects a sale to be completed in the second quarter of 2018. "Our detailed analysis leads us to believe that Dunkerque is the best location to drive forward our downstream automotive strategy. This will be our key strength when embarking on our ambitious plans", he said in a statement.

Calling the projected $2 billion investment in the Dunkerque, France, based smelter "the start of a major expansion into continental Europe", GFG said Liberty "wants to capitalise on the growing market for aluminium components among Europe's vehicle manufacturers".

Rio Tinto Aluminium chief executive Alf Barrios said the offer represents the best option for future development of the smelter site.

The firm intends to develop the plant into an global centre of aluminum and downstream aluminum products expertise, demonstrating its GREENALUMINIUM strategy.

Liberty House, the industrial division of Sanjeev Gupta's GFG Alliance, also acquired Rio's Lochaber smelter and assets in Scotland in December 2016.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.