Arconic to sell business in Russia, estimates potential losses at up to up $500 mln
PITTSBURG. May 20 (Interfax) - U.S. aluminum producer Arconic Inc. will be pursuing the sale of its Russian business, the company said in a statement.
Losses due to exiting the Russian market could total up to $500 million.
"The company undertook a thoughtful review of strategic alternatives given the limitations imposed on our operations by the Russian government and as a result of the ongoing legal dispute with the Russian Federal Antimonopoly Service," the company said.
Following this review, the company has determined, with the support of the board of directors, to pursue a sale of the facility in Samara, Russia in strict compliance with all applicable laws.
"Sadly, the conflict in Ukraine has made our operation in Russia untenable. We continue to prioritize the safety and well-being of our more than 3,000 world class employees and their families," CEO Tim Myers was quoted as saying in the statement.
Arconic was spun off in 2016 from aluminum giant Alcoa Corp. JSC Arconic SMZ (formerly Samara Metallurgical Plant) has been a part of Arconic since 2005. The company produces a wide range of rolled, pressed and forged products.