Mumbai: Novelis, a wholly owned subsidiary of Hindalco Industries, sold a 50% stake in its Ulsan facility in South Korea to Kobe Steel for $315 million (Rs 2,033 crore), creating an equally owned joint venture with the Japanese producer of aluminium roll. The transaction is expected to close by September this year. The Ulsan plant employs around 600 people. "As a company. we constantly identify business opportunities that allow us to deliver maximum value across our global operations and we continue to see Asia as a strategic market," Steve Fisher, CEO of US-based Novelis, said in a news release.
Deal, pegged at Rs. 2,033 crore, creates an equally-owned JV with the Japenese co, transaction may close by september.
The partnership is strategic as it will aid better utilization of the Ulsan facility as well as help serve increasing demand for lightweight rolled aluminium products across Asia, which is emerging as a manufacturing hub for the global automobile industry. The transaction will help Novelis also reduce its net debt.
The Ulsan plant completed a major expansion recently, adding a new three-stand hot finishing mill as well as pusher and annealing furnaces.
Net Income at $47M
Novelis posted a net income of $47 million, compared with $29 million a year earlier, helped in part by lower interest expense brought about by long-term debt refinancing actions taken during fiscal 2017
Dr. Pragnya RamGroup Executive President, Corporate Communications & CSRAditya Birla Management Corporation Private LimitedAditya Birla Centre, 1st Floor, 'C' WingS.K. Ahire Marg, WorliMumbai 400 030.
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