3 Aug 2022 09:45

Arconic in talks with several potential buyers of Russian plant

MOSCOW. Aug 3 (Interfax) - Arconic Inc., a U.S. manufacturer of aluminum products, is holding negotiations with several potential buyers of its Russian business, as well as with Russian and U.S. regulators, the company reported.

It is unclear when a deal might be closed.

The company's plant in Samara, Arconic SMZ (formerly Samara Metallurgical Plant (SMZ)) is operating normally. Its revenue grew 34% year-on-year to $314 million in the second quarter, while adjusted EBITDA was flat at $24 million.

However, the reduction of the plant's exports due to sanctions is expected to have a negative impact on its financial results for the year. The plant is expected to close 2022 with adjusted EBITDA down to $50 million-$80 million from $87 million in 2021, Arconic said.

Arconic announced in May that it intended to sell its Russian plant and that it expected to take a charge of up to $500 million as a result.

Arconic was spun off from aluminum giant Alcoa Corp. in 2016. Arconic SMZ, which has been part of the U.S. company since 2005, produces a broad range of rolled, pressed and forged aluminum products.