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GFG Alliance to Acquire Duffel Aluminium from Novelis

Metal News - Published on Mon, 09 Dec 2019

Image Source: GFG Alliance Duffel BVBA
Mr Sanjeev Gupta’s GFG Alliance has agreed to buy Novelis’s Duffel BVBA aluminium plant in Belgium for an undisclosed sum. The Duffel plant produces around 240,000 tonnes of semi-finished aluminium products, largely for sale to the European automotive industry. GFG said “The deal is consistent with GFG Alliance’s strategy to create an international, vertically integrated aluminum business. The move would help the firm’s bottom line thanks to savings on transportation costs and open up new avenues for research and development. At present the Duffel facility sources a portion of its aluminium needs from GFG’s Dunkerque aluminium smelter.

GFG aims to close the Duffel deal in coming months subject to regulatory approval from EU authorities and China's State Administration for Market Regulation.

The purchase of the Belgian mill is the latest in a series of aluminium and steel purchases by GFG in recent months and years. The firm purchased Europe’s biggest aluminium smelter in Dunkirk in France from Rio Tinto Group with a production capacity of 285,000 tonne per year of primary aluminum and became the new owner of the Lochaber smelter in Scotland three years ago. This acquisition came after GFG Alliance bought France's only aluminum wheel manufacturing plant in May 2018, which was already a major customer of the Dunkerque smelter, renaming it Liberty Wheels France. The group also has an aluminum smelter at Lochaber, Fort William, Scotland. Anodes are currently imported from China for use at GFG's Scottish plants.

Novelis, US based but owned by India’s Hindalco Industries, is the world leader in aluminium rolled products and aluminium recycling. The sale of the Duffel plant was a condition set by the European Union for clearing the USD 2.6 billion takeover by Novelis of automotive sheet body producer Aleris.

Source :

Posted By : Arun Huidrom on Mon, 09 Dec 2019
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