Zhongwang USA LLC announced on Tuesday that U.S. aluminum company Aleris Corporation would "operate as an independent entity" after acquisition including with regard to its location, management team and development strategy.
Zhongwang USA LLC, an investment company majority-owned and led by Liu Zhongtian, founder of China Zhongwang Holding Ltd, said on Monday it would buy Aleris. The $2.33 billion deal marks the biggest entry by a Chinese company into the U.S. aluminum industry.
According to Zhongwang, Aleris will continue to be headquartered in Cleveland, Ohio, and will be operated as an independent entity. The Aleris management team will remain in place, providing continuity for Aleris employees and customers and supporting the continued implementation of the Aleris strategy.
Aleris will retain its name and continue to serve its customers with no changes to current operations, contracts or commitments. It will continue with the implementation of all strategic growth projects, including its major expansion project in Lewisport, Kentucky, which will enable Aleris to meet the North American automotive industry's growing demand for aluminum auto body sheet.
"I believe Aleris is well-positioned to capitalize on the positive demand trends we see globally, and I look forward to supporting the Aleris management team in implementing their growth strategies and pursuing continued success with expanded resources and financial and operational flexibility," Liu said.
According to Reuters, the acquisition has strategic importance because Aleris is in the midst of a $350 million expansion of its Lewisport, Kentucky rolling mill to produce automotive body sheet for U.S. auto manufacturers. It is a "bet by the billionaire that the nascent U.S. automotive aluminum sector will be the industry's next big growth market".
