WVEDA approves partial financing for Constellium's $35 million investment to expand Ravenswood plant's ability to supply aerospace customers
AMSTERDAM, Aug. 20, 2015 /PRNewswire/ -- Constellium N. V. (NYSE and Euronext: CSTM) announced today that the West Virginia Economic Development Authority (WVEDA) has approved partial financing of Constellium's previously communicated investment of $35 million at its Ravenswood plant. The $15 million, 15-year loan financing will contribute to the installation of a new, state-of-the-art 800 Kt furnace, primarily dedicated to the manufacturing of advanced aluminium alloys. The new equipment is due to start production mid-2016 and is expected to significantly expand the plant's ability to support the growth ambitions of Constellium's aerospace customers.
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"This new pusher furnace is expected to enhance our high-quality service and product offering to aerospace customers," stated Ingrid Joerg, President of Constellium's Aerospace and Transportation business unit. "We are delighted to have such active support from the State of West Virginia. The Ravenswood plant employs more than 1,000 workers and also provides work for several hundred contractors. It is the largest employer in Jackson County and one of the 100 largest private employers in the state," Joerg added.
"Our willingness to partially finance Constellium's equipment demonstrates our commitment to supporting the development of the state's economy and to making West Virginia an even more attractive place for companies to invest. Constellium is a global leader in the aluminium business, and we're very happy they're continuing to invest in their Ravenswood facility," said Gov. Earl Ray Tomblin. "The Ravenswood plant provides stable, good-paying jobs, and this investment will help it stay at the forefront of aluminium manufacturing for years to come. It's a huge win for West Virginia."
"The pusher furnace will be a breakthrough for our plant in terms of homogenization capacity," emphasized Buddy Stemple, CEO of Constellium Rolled Products, LLC. "We will significantly increase the pre-heating capacity, a process step required to improve the workability of aluminium structures. This will allow us to improve quality and increase output production across our entire product range. Moreover, it demonstrates the confidence and value we place in the expertise of our employees and the faith the group has in the Ravenswood plant, which is helping us pave the way for sustainable growth in the future. We are pleased to partner with the WVEDA and the State of West Virginia in this significant investment in Ravenswood."
Constellium's Ravenswood plant is one of the world's largest facilities for the manufacturing of rolled aluminium products, offering customers the world's most powerful plate stretcher and one of the world's largest cold rolling mills. The plant supplies aluminium to a wide range of international industries, including leading aerospace, marine vessels and military vehicle manufacturers.
About Constellium
Constellium 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.
Forward Looking Statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain "forward looking statements" with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, "believes," "expects," "may," "should," "approximately," "anticipates," "estimates," "intends," "plans," "targets," likely," "will," "would," "could" and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. These risks and uncertainties include, but are not limited to, the ability of Constellium and Wise to achieve expected synergies and the timing thereof; the risk that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; Constellium's increased levels of indebtedness as a result of the transaction, which could limit Constellium's operating flexibility and opportunities; the potential failure to retain key employees as a result of the transaction or during the integration of the business, the loss of customers, suppliers and other business relationships as a result of the transaction; disruptions to business operations resulting from the transaction; slower or lower than expected growth in the North American market for Body-in-White aluminium rolled products and other risk factors set forth under the heading "Risk Factors" in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
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