Pittsburgh-based Alcoa Corp. (NYSE: AA) has completed the sale of its rolling mill business in Newburgh. The deal with Kaiser Aluminum Corp. (Nasdaq: KALU) in California is valued at $670 million.
Plans for the sale were first announced in December. Officials said when the deal was completed, the plant’s 1,170 workers would become employees of Kaiser.
As part of the agreement, Alcoa will retain ownership of the smelter and electric generating units at the site, which employ about 660 people. Alcoa will also continue to serve as owner of the property and has entered into a long-term ground lease agreement with Kaiser.
The rolling mill produces some 310,000 metric tons of flat-rolled aluminum each year for the packaging industry. Additionally, Alcoa says it has reached a market-based metal supply agreement and transition services agreement with Kaiser.