Arconic, one of the leading providers of aluminium sheet, plate and extrusions in the United States, announced that the company has successfully sold Promishlennie Investitsii LLC, the main shareholder of VSMPO-AVISMA Corporation, 100 per cent of its Russian operations for cash proceeds of $230 million.
As a result of the Russia-Ukraine crisis in March 2022, Arconic said that the corporation halted new contracts in that country. The company declared that it would sell its Russian business in May. The choice was made after considering strategic alternatives, considering the restrictions on the company's operations in Russia and the ongoing legal dispute with the Russian Federal Anti-Monopoly Service (FAS).
Arconic believes that its involvement in the FAS case has ended due to the sale of the firms subject to the FAS limitations. The Arconic SMZ metallurgical factory in Russia is run by Arconic and manufactures fabricated aluminium, including a wide range of extruded and flat-rolled products.
_0_0.gif)
“The assets of our Russian business have been restricted since prior to our emergence as a standalone company in April 2020. Operating in Russia only became more difficult and our ability to operate going forward became increasingly uncertain in light of the current geopolitical environment. This transaction supports our investments in future returns to our shareholders. I want to thank the remarkable team at our Russian operations that kept the facility running well through these most difficult circumstances,” said Tim Myers, Chief Executive Officer at Arconic.
Responses
