Amsterdam, The Netherlands – Constellium N.V. and its Japanese partner, UACJ Corp., have agreed to expand their existing joint venture to produce automotive Body-in-White (BiW) sheet in the U.S. The final contract is subject to the board approval of each party.
By joining forces, the joint venture will become a leading player in the North American BiW market, combining strengths in technology, knowhow and customer relationships. Under the expanded joint venture, Constellium and UACJ contemplate a joint investment in two previously announced 100kt finishing lines, which would be funded 51% by Constellium and 49% by Tri-Arrows Aluminium Holdings, a U.S. affiliate of UACJ. Location of the finishing lines is still to be decided.
This agreement to share investments in the finishing lines with UACJ enables Constellium to reduce its estimated capital requirement to fund its total BiW investments in the U.S. to approximately $340 million – compared to the $620 million previously announced in October 2015.
“We are delighted to strengthen our successful partnership with UACJ” says Pierre Vareille, CEO of Constellium. “We are fully committed to our BiW strategy and well placed to execute it. This agree-ment supports our strategic objective of expanding Constellium’s BiW industrial footprint in North America to serve our automotive customers while reducing the capital needed for this project. This partnership positions the joint venture as a leader in the fast expanding North American market”.
The Constellium and UACJ joint venture has already invested in a first finishing line located in Bowling Green, Kentucky, which is expected to begin pre-qualification production mid-2016 and ramp-up in 2017 as planned.
Source: Constellium