ULSAN < invest Korea

Novelis Inc., an American industrial aluminum company, will sell its 50 percent stake in its production facility in Ulsan, South Korea, to Japanese steel manufacturer Kobe Steel Ltd for a joint-venture in lightweight rolled aluminum supplies across Asia.

The American aluminum manufacturer said Wednesday that it inked an agreement with Kobe Steel to sell its 50 percent of its ownership interest in Ulsan aluminum factory at $315 million to the Japanese steel maker and create a joint venture that is to be named Ulsan Aluminum Ltd. Under the terms of agreement, two companies will jointly own and operate the aluminum manufacturing plant in Ulsan located on the southeastern coast of Korea with each company responsible for metal supply and commercial relationship. The two will complete the transaction by September.

Novelis, world’s leader in aluminum rolled products runs business with nearly 12,000 employees in 10 countries across the globe, has been running two manufacturing facilities in Ulsan and Yeongju, central Korea. Its worldwide sales for fiscal 2016 reached $10 billion, and its Korean unit posted 58 billion won ($51 million) in operating income on sales of 1.8 trillion won last year.

Steve Fisher, president and chief executive officer of Novelis said the partnership would enhance the company’s “strategic flexibility,” allowing it to provide better service to customers and invest in future market opportunities.

Kobe Steel is a Japanese conglomerate whose business includes iron and steel production, welding to industrial machinery making as well as electric power supply.


[Photo by Novelis Inc.]

By Moon Ji-woong

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Source: Pulse by Maeil Business News Korea (May. 11, 2017)