GFG Alliance companies SIMEC and Liberty House have acquired Alcan Aluminium UK from Rio TInto for £330m.
The sale, which secures over 150 jobs, includes an operating smelter, plus the hydroelectric facilities at Kinlochleven and Lochaber.
SIMEC will own and operate the hydro plants as part of its portfolio of renewable power assets in the UK, whilst Liberty House will own and develop the aluminium business by integrating the smelters with the group’s downstream engineering and manufacturing activity.
GFG Alliance strategic board executive chairman Sanjeev Gupta said: “This is a significant boost to our renewables portfolio and will be another major step towards reducing our carbon footprint in metals production.
“This is a natural next step for us in our Scottish investment programme and is a springboard for wider manufacturing growth, creating many more jobs in Scotland. We are grateful for the continuing support of the Scottish Government and for their far-sighted approach to industry.”
The acquisition, which is expected to close mid-December 2016, follows the reopening by Liberty of the steel plate mill at Dalzell near Glasgow, which had been mothballed by previous owners. It is being funded with equity and funds raised through a securitisation programme. The group’s investment at Lochaber is also backed by the Scottish government through business support mechanisms that include support for Liberty to purchase power from the hydroelectric plants.