AMSTERDAM, March 10, 2016 /PRNewswire/ -- Constellium N.V. (NYSE and Euronext: CSTM) today announced the signing of a Memorandum of Understanding (MoU) with its Japanese partner UACJ Corporation (UACJ) to expand their existing joint venture to produce automotive Body-in-White (BiW) sheet in the U.S. The final contract is subject to the board approval of each party.
By joining forces, the joint venture will become a leading player in the North American BiW market, combining strengths in technology, know-how and customer relationships. Under the expanded joint venture, Constellium and UACJ contemplate a joint investment in two previously announced 100 kt finishing lines, which would be funded 51% by Constellium and 49% by Tri-Arrows Aluminium Holdings, a U.S. affiliate of UACJ. Location of the finishing lines is still to be decided.
This agreement to share investments in the finishing lines with UACJ enables Constellium to reduce its estimated capital requirement to fund its total BiW investments in the U.S. to approximately $340 million - compared to the $620 million previously announced in October 2015.
"We are delighted to strengthen our successful partnership with UACJ," stated Pierre Vareille, CEO of Constellium. "We are fully committed to our BiW strategy and well placed to execute it. This agreement supports our strategic objective of expanding Constellium's BiW industrial footprint in North America to serve our automotive customers while reducing the capital needed for this project. This partnership positions the joint venture as a leader in the fast expanding North American market".
The Constellium and UACJ joint venture has already invested in a first finishing line located in Bowling Green, Kentucky, which is expected to begin pre-qualification production mid-2016 and ramp-up in 2017 as planned.
Constellium does not intend to make any further comments until its Q4 & FY 2015 Earnings call scheduled for March 15, 2016.
Constellium (NYSE and Euronext: CSTM) is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated €3.7 billion of revenue in 2014.
UACJ was established in October 2013 when Furukawa-Sky Aluminum and Sumitomo Light Metal Industries integrated their business operations. Both companies featured a distinguished history as aluminium producers in Japan. Together, their annual capacity for rolled sheet products exceeded 1 million tons. www.uacj.co.jp
About Tri-Arrows Aluminum Inc. (TAA)
Tri-Arrows Aluminum, Inc. is a 100% owned subsidiary of TAAH, which is a consortium owned 75% by UACJ, 20% by Sumitomo Corporation and 5% by Itochu / Itochu Metals.
Forward Looking Statement
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