Aluminum and magnesium recycling company and secondary aluminium producer Real Alloy closes its Wisconsin facility as part of continuing efforts to improve efficiencies and a follow up of its bankruptcy filing in November 2017.
On November 17, 2017, Real Industry and its U.S. subsidiaries have filed for voluntary bankruptcy under Chapter 11. The secondary aluminium producer said they continue with its operations with grants from the Court on an interim basis. The company cited a lack of cash in absence of borrowing and refinancing debt as a key reason for bankruptcy.
{alcircleadd}
According to a company press release in January, the third-party aluminium recycling company ceased operations at its Mount Pleasant, Wisconsin facility, which it had acquired from Beck Aluminum about a year ago. According to the company’s website, the 180,000-square-foot facility employs 39 staff and can produce more than 10 alloy families.
“Real Alloy expects to utilize available production capacity in nearby Indiana and Michigan facilities, and feels that shutting down the facility allows the business to better utilize production capacity and reduce overall capital needs,” the press release says.
The company assured that its customers are would not be affected by the closure.
“Real Alloy has continued to work closely with its suppliers and critical vendors throughout this restructuring process, and has received strong support from customers and vendors alike,” the release states.
Real Alloy also reported that despite its bankruptcy filing in November, it has successfully negotiated contracts with several long standing customers. The 2018 production and supply contracts, according to the press report were with major automakers and large-scale aluminium producers.
Responses
