Arconic has reached an agreement to sell its Texarkana, Texas rolling mill to Ta Chen International, Inc., a US subsidiary of aluminium and stainless steel distributor Ta Chen Stainless Pipe Co., Ltd. Under the terms of the transaction, Arconic will sell Texarkana for approximately USD300 million in cash, plus additional contingent consideration of up to USD50 million. The transaction is expected to close in the fourth quarter of 2018, subject to receipt of certain regulatory approvals and other customary closing conditions.
“The strong market conditions for industrial products gave us an opportunity to sell an asset that has been idled for several years,” said Tim Myers, president of Arconic’s Global Rolled Products segment. “This is a positive development for the dedicated workforce at Texarkana, and it helps our business as we continue to explore opportunities to enhance our portfolio.”
There are currently around 90 employees located at the Texarkana plant, which produces material primarily used to serve the industrial market.