Pittsburgh aluminium value-added firm Arconic announced the completion of the sale of the entirety of its Russian operations to Promishlennie Investitsii LLC for US$230 million.
Arconic notes that the closing occurred upon the receipt of all necessary approvals, at which point Promishlennie Investitsii tendered the US$230 million cash payment. The cash held in Russia was unavailable for distribution due to litigation begun in March 2020 by the Russian state anti-monopoly department.
Tim Myers, Chief Executive Officer, said in a press release that the sale was motivated in large part by the difficulty with which his firm has had in remaining in operation in Russia.
“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.”
Promishlennie Investitsii is the majority stakeholder for VSMPO-AVISMA Corporation, which is headquartered in Verkhnyaya Salda, Russia and is the world’s largest producer of titanium.
