Tata Steel’s European arm Corus has officially announced that the latter’s aluminium smelters in The Netherlands and Germany have been put on the block.
But the latter is interested in a single buyer for better valuation
KOLKATA: Tata Steel’s European arm Corus has officially announced that the latter’s aluminium smelters in The Netherlands and Germany have been put on the block since it is not part of core business of the group.
According to unconfirmed reports, Trimet, a German aluminium producer, is keen to acquire one of the smelters, but Corus would be keen to hive off the non-ferrous business to a single buyer to get a better valuation.
The two smelters located at Delfiz in The Netherlands and Vorde in Germany is expected to fetch around $1 billion.
Corus CEO Philippe Varin said on sidelines of a steel industry conference in Berlin that electricity supply contracts were currently under way for the smelters and thereafter the goal would be to find a strategic future for this business that is more supportive for aluminium outside Corus.
The downstream aluminium business of Corus had been sold off before the company was acquired by Tata Steel.
The smelters in Delfzijl in the Netherlands and Voerde in Germany have a combined capacity to produce around 2,50,000 tonnes of primary aluminium annually, and including secondary production from scrap, have a total output of more than 3,00,000 tonnes of aluminium a year.
As Tata is focused on steel, industry analysts have expected the primary aluminium plants to be sold.
In October 2005, Corus reached a new power supply agreement for its Voerde plant, saving the works from closure.
Asked on Tuesday whether this contract meant the power supplies of the Voerde plant were secure, Varin said: “We now have some CO2 issues on this contract that we did not have before.” This meant both plants had electricity supply issues which needed to be solved, he said.
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