BEACHWOOD, Ohio, July 12 /CNW/ -- Aleris Light Gauge Products, a business
unit of Aleris International, Inc., announced today that it will be
permanently closing its aluminum rolling mill facility located in Cap de la
Madeleine, Quebec, following an orderly shut down of all remaining activities
at the facility. All new production has already ceased. Aleris made this
decision because of the permanent and irreparable damage suffered by the
operations as a result of the ongoing labor issues.
The unionized production and maintenance workforce at the facility has
been working without a collective bargaining agreement since February 2008,
when the prior labor agreement expired. Management and representatives of the
union engaged in negotiations and discussions regarding a new collective
bargaining agreement for many months. Those negotiations and discussions were
unsuccessful, and the union failed to ratify a new agreement. This impasse
resulted in management imposing a lock out on July 2, 2008 and ceasing all new
production. The union voted to reject management's final proposal on two
occasions, first on July 1, 2008 and again on July 10, 2008.
Aleris International, Inc. is a global leader in aluminum rolled products
and extrusions, aluminum recycling and specification alloy production.
Headquartered in Beachwood, Ohio, a suburb of Cleveland, the Company operates
47 production facilities in North America, Europe, South America and Asia, and
has approximately 8,800 employees. For more information about Aleris, please
visit our Web site at www.aleris.com.
SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
Forward-looking statements made in this news release are made pursuant to
the safe harbor provision of the Private Securities Litigation Reform Act of
1995. These include statements that contain words such as "believe,"
"expect," "anticipate," "intend," "estimate," "should" and similar expressions
intended to connote future events and circumstances, and include statements
regarding future actual and adjusted earnings; future improvements in margins,
processing volumes and pricing; overall 2008 operating performance;
anticipated effective tax rates; expected cost savings; success in integrating
Aleris's recent acquisitions, including the acquisition of the downstream
aluminum businesses of Corus Group plc; its future growth; the anticipated
economic environment in 2008; future benefits from acquisitions and new
products; expected benefits from changes in the industry landscape; and
anticipated synergies resulting from the acquisition of the downstream
aluminum businesses of Corus Group plc and other acquisitions. Investors are
cautioned that all forward-looking statements involve risks and uncertainties,
and that actual results could differ materially from those described in the
forward-looking statements. These risks and uncertainties would include,
without limitation, Aleris's levels of indebtedness and debt service
obligations; its ability to effectively integrate the business and operations
of its acquisitions; further slowdowns in automotive production in the U.S.
and Europe; the financial condition of Aleris's customers and future
bankruptcies and defaults by major customers; the availability at favorable
cost of aluminum scrap and other metal supplies that Aleris processes; the
ability of Aleris to enter into effective metals, natural gas and other
commodity derivatives; continued increases in natural gas and other fuel costs
of Aleris; a weakening in industrial demand resulting from a decline in U.S.
or world economic conditions, including any decline caused by terrorist
activities or other unanticipated events; future utilized capacity of Aleris's
various facilities; a continuation of building and construction customers and
distribution customers reducing their inventory levels and reducing the volume
of Aleris's shipments; restrictions on and future levels and timing of capital
expenditures; retention of Aleris's major customers; the timing and amounts of
collections; currency exchange fluctuations; future write-downs or impairment
charges which may be required because of the occurrence of some of the
uncertainties listed above; and other risks listed in Aleris's filings with
the Securities and Exchange Commission (the "SEC"), including but not limited
to Aleris's annual report on Form 10-K for the fiscal year ended December 31,
2007 and quarterly report on Form 10-Q for the quarter ended March 31, 2008,
particularly the sections entitled "Risk Factors" contained therein.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050504/CLW056LOGO )
For further information:
For further information: Media: Bill Sedlacek, +1-216-910-3522, or
Investor: Sean M. Stack, +1-216-910-3504, both of Aleris International, Inc.
Web Site: http://aleris.com