(Luvata: London, UK. 29 April 2011). Luvata and Aurubis AG have signed an agreement on the sale of Luvata’s Rolled Products division. The division produces approximately 160Ktonnes of copper and copper-alloy sheets, strips and plates per year and employs 1,100 people at production facilities in USA, Finland, Sweden, Netherlands and Italy. The transaction is subject to customary regulatory approvals and is expected to close in August 2011.
The sale is a significant step forward in the development of both companies as well as an important development for the copper-and-brass rolled-products industry in general. Luvata began its extensive restructuring programme in 2005, led by the need for industry consolidation and orientation towards higher-value-added products in high-growth markets. This sale will allow Luvata to focus its resources on the next stage of its growth strategy – with clear focus on emerging markets and engineered products.
“Our programme of restructuring has involved major acquisitions as well as divestitures.” said John Peter Leesi, CEO and President of Luvata Group. “This sale is a good strategic move for Luvata. The global economic upturn combined with Luvata’s focus on growth markets presents significant business opportunities and allows us to focus on what we do best: technology-driven, high value-added solutions. The sale of the Rolled Products division gives Luvata greater focus, agility and resources to make the most of that.”
“Our Rolled Products business will be ideally placed for its future as a part of a vertically integrated business within Aurubis. We’re very happy with the outcome of what has been a detailed sale-and-acquisition process.”
The Luvata facilities involved in the acquisition include Zutphen, Netherlands; Finspång and Västerås, Sweden; Mortara, Italy; and Buffalo, NY U.S.A. The rolling mill and copper foundry in Pori, Finland are also included in the sale although the majority of the manufacturing facility in Pori will remain with Luvata’s Special Products division, manufacturing products such as photovoltaic wire, superconductors, electrical power parts and metallurgical-application products. Luvata will continue to buy and process approximately 200,000 tonnes of copper per year, as well as other metals.
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Luvata is a major international supplier of products, components, solutions and services for manufacturing and construction. Luvata’s solutions are used in industries such as power generation, renewable energy, telecommunications, architecture, automotive, medicine, air-conditioning, refrigeration, and a wide range of consumer products. The company’s continued success is attributed to its longevity, its technological excellence and strategy of integrating with its customers’ businesses. In March 2011, the Group employed 7,800 staff in 19 countries, Luvata works in partnership with customers such as Siemens, Toyota, CERN, Shaaz, and DWD International.
The Aurubis Group is the largest copper producer in Europe and the world leader in copper recycling. The company produces more than 1 million tonnes of copper cathodes each year and from them a variety of copper products. Aurubis has sites in seven European countries with about 4,800 employees.
Aurubis’ core business is the production of marketable copper cathodes from copper concentrates, copper scrap and recycling raw materials. These are processed within the Group into continuous cast wire rod, shapes, rolled products as well as special wire and profiles made of copper and copper alloys. Precious metals and a number of other products, such as sulphuric acid and iron silicate, round off the product portfolio.
Customers of the Aurubis Group include companies in the copper semis industry, the electrical engineering, electronics and chemical industries as well as suppliers of the construction and car industries.