UPDATE: Arconic says has reached an agreement to sell its Texarkana, Texas rolling mill to Ta Chen International, Inc.
Arconic will sell the mill for approximately $300 million in cash, plus additional contingent consideration of up to $50 million.
The transaction is expected to close in the fourth quarter of 2018.
“The strong market conditions for industrial products gave us an opportunity to sell an asset that has been idled for several years,” said Tim Myers, President of Arconic’s Global Rolled Products and Transportation and Construction Solutions segments. “This is a positive development for the dedicated workforce at Texarkana, and it helps our business as we continue to explore opportunities to enhance our portfolio.”
ORIGINAL: Arconic is investing $14 million in its Texarkana facility to restart previously idled equipment used for finishing rolled aluminum sheet used to make industrial products.
The equipment is expected to be operational by January 2019 and the investment is expected to create 35 jobs.
“This investment is a great opportunity to capture near-term opportunities in high-growth markets,” said Tim Myers, President of Arconic’s Global Rolled Products and Transportation and
Construction Solutions businesses. “By restarting Texarkana’s existing equipment, we are able to quickly ramp up to provide additional value-add products for our customers.”
Engineering for the project is already underway and work is expected to begin this month. The project is expected to ramp up production in the first quarter of 2019.
Arconic has applied for incentives to support the project. A decision is pending before the Bowie County Board of Commissioners, cities of Nash and Texarkana as well as Texarkana
Community College and Texarkana Chamber of Commerce.