Beech Tree News Network

    A Chinese company is buying the Aleris Corp. -- Hancock County's largest employer -- for $2.33 billion.

    But Mike Keown, a Hawesville native who is senior vice president of Aleris and president of Aleris North America, said no changes are planned.

    The corporate name, management and products will remain the same, he said. And the $350 million expansion of the company's Lewisport rolling mill will continue.

    That's welcome news for the 700-plus Hancock County employees and for the county at large.

    "This looks like a very positive development," Mike Baker, director of the Hancock County Industrial Foundation, said Monday. "The Lewisport mill is a big part of Aleris today. I would think with a purchase price like that, we could see more investments in Lewisport in the future."

    The purchaser is Zhongwang USA LLC, a company majority-owned and led by billionaire Liu Zhongtian, founder of China Zhongwang Holdings Limited.

    He founded the company in 1993 when he was 29.

    It recently reported that its sales were up 6.8 percent for the first six months of the year.

    Liu's China Zhongwang lists itself as the world's second-largest industrial aluminum extrusion developer and manufacturer.

    A news release said the acquisition of Aleris reflects Liu's "commitment to disciplined operating investments over the long term in an industry to which he has been committed for two decades."

    "This acquisition is an international expansion to establish a complementary business foothold, as I strongly believe in the potential and prospects of Aleris and the aluminum industry as a whole," Liu said in a news release.

    He added, "Aleris has a strong management team, talented employees and industry-leading capabilities with a complementary geographic footprint."

    Liu said, "As the company enters the final phase of its Lewisport automotive project, I believe Aleris is well-positioned to capitalize on the positive demand trends we see globally, and I look forward to supporting the Aleris management team in implementing their growth strategies and pursuing continued success with expanded resources and financial and operational flexibility."

    Keown said, "We made the future of Lewisport two years ago when we decided to expand there. It's extremely positive. That investment is going to pay off."

    He said the sale has been in the works for several months, although it caught many in Hancock County by surprise.

    "They're saying business as usual," Baker said. "Zhongwang is heavily invested in aluminum worldwide. They should take Aleris on to even greater things. This should bode well for Lewisport."

    The news release said Aleris' headquarters will remain in Cleveland, and it will be operated as an independent entity.

    The company's management team will remain in place, providing continuity for Aleris employees and customers, it said.

    The Lewisport expansion gives the mill the ability to produce sheet aluminum that can be applied to auto body parts such as hoods, door panels and trunks.

    The expansion is in response to the auto industry's plans to use more aluminum in vehicles to make them lighter and more fuel-efficient.

    Sean Stack, president and CEO of Aleris, said in the news release that he expects the "transition to be seamless for our employees and customers, and that the new strategic shareholder will provide us with greater financial flexibility to continue to anticipate and meet the needs of our customers well into the future."

    Since 2010, Aleris has been owned and controlled by a group led by investment funds of Oaktree Capital Management, with affiliates of Apollo Management and Sankaty Advisors owning minority interests.

    The sale is expected to close in the first quarter of 2017.

  By Keith Lawrence
    The Messenger-Inquirer
     August 30, 2016- Kentucky Press News Service