Rio Tinto sells Alcan Composites to Schweiter Technologies
22 Sep 2009
In order to trim its mounting debts, Rio Tinto Ltd. yesterday said it has agreed to sell its Alcan Composites business, part of the Alcan Engineered Products division, to Schweiter Technologies AG of Switzerland for $349 million.
The ore major has been seeking to divest the Alcan engineering assets since its 2007 takeover of the aluminum group to pay off some of its massive debt, which amounts to about $24.3 billion.
Rio's chief financial officer Guy Elliott said the latest deal shows progress is now being made in the sales process.
"In the last three months, we have made significant inroads into divesting the downstream assets acquired with Alcan, including offers or agreed sales for the majority of Alcan Packaging & Cable," he said.
"Schweiter Technologies is well placed to successfully develop the Composites business, and we are realising further value for Rio Tinto shareholders," Elliott added.
Alcan Composites, based in Switzerland, manufactures sandwich composite materials for the display, architecture, and wind energy sectors.