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«Century Aluminum» will receive full control over the «Holly»

The company «Century Aluminum» just 67.5 million. USD cash will acquire full control of the aluminum plant «Holly» with an annual production capacity of 229,000 tons, is located in South Carolina. This agreement will provide «Century Aluminum» an opportunity to increase their own power and to increase value-added products, the closing of the transaction is scheduled to be held before the end of this year. Under the agreement «Century Aluminum» becomes «Alumax», located in South Carolina, a subsidiary «Alcoa», which owns 50.3% of shares in the «Holly». At the moment, under the «Century Aluminum» is already controlled 49.7% of the shares. By signing the deal, «Century Aluminum» will secure orders for aluminum products in the aerospace, automotive, and other important areas of industry in the US and South Carolina.

According to the president «Alcoa Global» company, Bob Wilt, despite the fact that «Holly is» falls under the definition of «heavy object» spent money on it do not fit developed «of Alcoa 'criteria, focused on low-cost asset portfolio. Sale of the enterprise will both optimize the product portfolio, as well as to organize the defense of jobs. The particular cost item in the enterprise — providing electricity to the melting furnace, and the flow rate must be reduced, which was developed by a new agreement on electricity supply for the next year with the state-owned electricity.

The current value of «Holly» to 67.5 million. USD is currently fully comparable with the amount of 60 mln. USD. That is the price of «Century Aluminum» paid in 2012, the company «Rio Tinto Alcan» when buying aluminum production «Sebree» in western Kentucky, annual capacity is 205 thousand tons.

Meanwhile, the cost of aluminum forecast for next year continues to rise: in early October, the corporation «Morgan Stanley» has revised its previous calculations upwards by 3% this year and by 8% in 2015. This increase is due to increasing amounts of aluminum, used in the automotive and other industries in the world and particularly in the United States. In addition, the proposal is reduced because light metal manufacturers continue to cut production. According to the latest forecast of the cost of the current year has increased to the level of 1893 USD / ton in 2015, the price will increase to the level of 2072 USD / ton.

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