Aleris Corporation (also Aleris Inc. or Aleris International Inc.) was an American
aluminum
Aluminium (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...
rolled products
producer, based in
Beachwood, Ohio. The company had approximately 5,000 employees globally as of mid 2015.
On 15 April 2020, Aleris Corporation was acquired by
Hindalco Industries
Hindalco Industries Limited an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India.
The company is listed in the Forbes Global 2000 (2023) at 661st r ...
subsidiary
Novelis Inc. for $2.8 billion. With the deal closure, Hindalco is now one of the world's largest aluminium makers and Novelis' entered into the high-end aerospace segment.
Corporate affairs
Aleris was an
aluminum
Aluminium (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...
rolled products
producer, based in
Beachwood, Ohio, a suburb of
Cleveland
Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County. Located along the southern shore of Lake Erie, it is situated across the Canada–U.S. maritime border and approximately west of the Ohio-Pennsylvania st ...
.
The
privately held company
A privately held company (or simply a private company) is a company whose Stock, shares and related rights or obligations are not offered for public subscription or publicly negotiated in their respective listed markets. Instead, the Private equi ...
had approximately 5,000 employees overall, as of mid 2015, around 200 of which are based in
Northeast Ohio
Northeast Ohio is a geographic and Cultural area, cultural region that comprises the northeastern counties of the U.S. state of Ohio. Definitions of the region consist of 16 to 23 counties between the southern shore of Lake Erie and the foothills ...
, including a manufacturing facility in
Uhrichsville, Ohio
Uhrichsville( ) is a city in Tuscarawas County, Ohio, United States. The population was 5,272 at the 2020 census.
Claymont City School District is the public school district of Uhrichsville and Dennison, Ohio. The twin cities is a nickname us ...
.
Aleris has
private equity
Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...
owners, including
Apollo Global and
Oaktree Capital Management
Oaktree Capital Management, Inc. is an American global asset management firm specializing in alternative investment strategies. As of September 30, 2024, the company managed $205 billion for its clientele.
The firm was co-founded in 1995 by a ...
.
Steve Demetriou served as the first
chairman
The chair, also chairman, chairwoman, or chairperson, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the gro ...
and
chief executive officer
A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization.
CEOs find roles in variou ...
(CEO).
[ Sean Stack became CEO and joined the ]board of directors
A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency.
The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
in mid 2015. Scott Graves became a non-executive chairman of Aleris' board at the same time.
History
Aleris was established in 2004, the result of a merger between an aluminum recycling company and an aluminum rolled products company.[ Aleris operated as a ]portfolio company
A portfolio company (commonly abbreviated as PortCo) is a company or entity in which a venture capital firm, a startup studio, or a holding company invests. All companies currently backed by a private equity firm can be spoken of as the firm's port ...
of Texas Pacific Group
TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American private equity firm based in Fort Worth, Texas. TPG manages investment funds in growth capital, venture capital, public equity, and debt investments. The firm in ...
, and expanded via acquisitions during its early history. The company acquired Corus Group
Corus may refer to:
Places
* Çörüş, Gazipaşa, a village in Antalya Province, Turkey
Facilities and structures
* Corus Quay, Toronto, Ontario, Canada; an office tower
Fictional locations
* Corus, a fictional world that is the setting for the ...
's aluminum extrusion
Extrusion is a process used to create objects of a fixed cross section (geometry), cross-sectional profile by pushing material through a Die (manufacturing), die of the desired cross-section. Its two main advantages over other manufacturing pro ...
and rolling businesses for approximately $894 million (€700 million) in 2006, and Wabash Alloys for an undisclosed amount in 2007.[ Following the Corus acquisition, Aleris had approximately 8,800 employees and more than 40 manufacturing facilities globally.][
In February 2009, the ]Department of Justice
A justice ministry, ministry of justice, or department of justice, is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a ...
filed suit against the company, alleging that 15 of its plants had violated the Clean Air Act by emission of pollutants. Aleris settled the suit with the government in August 2009, and agreed to pay a $4.6 million fine and spend an additional $4.2 million on new pollution controls at its plants. The 2008 financial crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
and the Great Recession
The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009. caused significant downturns in production, and Aleris experienced a 40 percent volume decline during 2008–2009.[
In 2009, the company filed for ]Chapter 11
Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, w ...
bankruptcy, and Apollo, Oaktree Capital, and Sankaty Advisors
Bain Capital, LP is an American private investment firm based in Boston, Massachusetts, with around $185 billion of assets under management. It specializes in private equity, venture capital, credit, public equity, impact investing, life scie ...
became owners in 2010. Aleris stabilized its financial position and significantly reduced debt. The company also invested in its facilities, building a new aerospace plate mill in China during the early 2010s, finishing a $70 million expansion of its facility in Duffel
Duffel () is a Municipalities of Belgium, municipality in the Belgium, Belgian province of Antwerp (province), Antwerp.
The municipality comprises the town of Duffel proper. On 1 January 2020, Duffel had a total population of 17,664. The total ar ...
Belgium (2013), and improving its plant in Ashville, Ohio, in 2014.[ Aleris acquired Nichols Aluminum and its production facilities in ]Davenport, Iowa
Davenport ( ) is a city in Scott County, Iowa, United States, and its county seat. It is situated along the Mississippi River on the eastern border of the state. Davenport had a population of 101,724 as of the 2020 United States census, 2020 cen ...
, Decatur, Alabama
Decatur () is the largest city and county seat of Morgan County, Alabama, Morgan County (with a portion also in Limestone County, Alabama, Limestone County) in the U.S. state of Alabama. Nicknamed "The River City," it is located in North Alabam ...
, and Lincolnshire, Illinois
Lincolnshire is a village in Lake County, Illinois, United States. It is a northern suburb of Chicago. Per the 2020 census, the population was 7,940. Named after Lincolnshire, England, the village was incorporated on August 5, 1957, from the u ...
, for $110 million cash in 2014. The aluminum finishing plant in Decatur was closed before the end of the year to streamline operations. Aleris had more than 40 production facilities in North America, Europe, and Asia, as of October 2014.
In 2015, the company focused on selling its extrusion and recycling businesses, and planned to raise approximately $600 million in capital. The divestitures decreased the number of employees to around 5,000.[ Aleris abandoned plans to complete an ]initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
in 2015.[ The company had approximately 7,000 employees in the U.S., Europe, and China at the time, including approximately 340 in Uhrichsville and 250 in ]Greater Cleveland
The Cleveland metropolitan area, or Greater Cleveland as it is more commonly known, is the metropolitan area surrounding the city of Cleveland in Northeast Ohio, United States. According to the 2020 census results, the six-county Cleveland, OH ...
.[ Aleris was also among the largest aluminum sheet suppliers for ]semi-trailer
A semi-trailer is a trailer (vehicle), trailer without a front axle. The combination of a semi-trailer and a tractor truck is called a ''semi-trailer truck'' (also known simply as a "semi-trailer", "tractor trailer", or "semi" in the United Sta ...
s, and the leading aluminum sheet supplier for the U.S. residential construction industry.[ The company increased production as the ]automotive industry
The automotive industry comprises a wide range of company, companies and organizations involved in the design, Business development, development, manufacturing, marketing, selling, Maintenance, repairing, and Custom car, modification of motor ve ...
began using more aluminum than steel. Aleris' new aluminum body sheet facility in Lewisport, Kentucky
Lewisport is a home rule-class city in the floodplain of the Ohio River in Hancock County, Kentucky, in the United States. The population was 1,670 at the 2010 census, and is also the most populous community in the county. It is included in t ...
opened in 2017.
China Zhongwang subsidiary Zhongwang USA and Aleris entered into a merger agreement in August 2016, marking the highest offer made by a Chinese firm for an American metal producing company. However, the $2.3 billion ($1.1 billion in cash plus $1.2 billion in debt)[ agreement was abandoned in November 2017 because of uncertainties around regulations and approval by the ]Committee on Foreign Investment in the United States
The Committee on Foreign Investment in the United States (CFIUS, ) is an inter-agency committee in the United States government that reviews the national security implications of foreign investments in the U.S. economy.
CFIUS, led by the U.S ...
. Hindalco Industries
Hindalco Industries Limited an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India.
The company is listed in the Forbes Global 2000 (2023) at 661st r ...
was working on a $2.5 billion bid to acquire Aleris, as of October 2017,[ and Vedanta Resources was considering a bid, as of January 2018.]
In 2017 and 2018, Aleris entered into multi-year agreements to supply aluminum to Bombardier Inc.
Bombardier Inc. () is a Canadian aerospace manufacturer that produces business jets. Headquartered in Montreal, the company was founded in 1942 by Joseph-Armand Bombardier to market his snowmobiles, and it later became one of the world's big ...
and Boeing
The Boeing Company, or simply Boeing (), is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support s ...
, respectively. Aleris is ranked number 690 on the 2019 Fortune 1000
{{location map+ , United States , float=right , width=400, relief=1 , caption=''Fortune'' 1000 company headquarters locations. Top 20 companies labeled, places=
{{location map~ , United States , lat= 36.365378 , long= -94.217629 , label= Walmart, ...
.
In March 2019, Aleris was recognized with the accredited supplier award for outstanding quality performance by Airbus
Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
for the second consecutive year.
On 15 April 2020, Aleris Corporation was acquired by Hindalco Industries subsidiary Novelis Inc. for $2.8 billion. With the deal closure, Hindalco is now one of the world's largest aluminium makers and Novelis' entered into the high-end aerospace segment.[
]
Metals
Aleris manufactures a number of different alloys, such as AA7022-T651, a member of the 7000 series of alloys, which contains in addition to aluminum, silicon
Silicon is a chemical element; it has symbol Si and atomic number 14. It is a hard, brittle crystalline solid with a blue-grey metallic lustre, and is a tetravalent metalloid (sometimes considered a non-metal) and semiconductor. It is a membe ...
, iron
Iron is a chemical element; it has symbol Fe () and atomic number 26. It is a metal that belongs to the first transition series and group 8 of the periodic table. It is, by mass, the most common element on Earth, forming much of Earth's o ...
, copper
Copper is a chemical element; it has symbol Cu (from Latin ) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkish-orang ...
, manganese
Manganese is a chemical element; it has Symbol (chemistry), symbol Mn and atomic number 25. It is a hard, brittle, silvery metal, often found in minerals in combination with iron. Manganese was first isolated in the 1770s. It is a transition m ...
, magnesium
Magnesium is a chemical element; it has Symbol (chemistry), symbol Mg and atomic number 12. It is a shiny gray metal having a low density, low melting point and high chemical reactivity. Like the other alkaline earth metals (group 2 ...
, chromium
Chromium is a chemical element; it has Symbol (chemistry), symbol Cr and atomic number 24. It is the first element in Group 6 element, group 6. It is a steely-grey, Luster (mineralogy), lustrous, hard, and brittle transition metal.
Chromium ...
, zinc
Zinc is a chemical element; it has symbol Zn and atomic number 30. It is a slightly brittle metal at room temperature and has a shiny-greyish appearance when oxidation is removed. It is the first element in group 12 (IIB) of the periodic tabl ...
, titanium
Titanium is a chemical element; it has symbol Ti and atomic number 22. Found in nature only as an oxide, it can be reduced to produce a lustrous transition metal with a silver color, low density, and high strength, resistant to corrosion in ...
and zirconium
Zirconium is a chemical element; it has Symbol (chemistry), symbol Zr and atomic number 40. First identified in 1789, isolated in impure form in 1824, and manufactured at scale by 1925, pure zirconium is a lustrous transition metal with a greyis ...
. In its Koblenz
Koblenz ( , , ; Moselle Franconian language, Moselle Franconian: ''Kowelenz'') is a German city on the banks of the Rhine (Middle Rhine) and the Moselle, a multinational tributary.
Koblenz was established as a Roman Empire, Roman military p ...
facility, which used to be called Corus Aluminium Walzprodukte GmbH, it produces alloy AA5059-H131, and for the structural components of aircraft, aluminium-magnesium-lithium
Lithium (from , , ) is a chemical element; it has chemical symbol, symbol Li and atomic number 3. It is a soft, silvery-white alkali metal. Under standard temperature and pressure, standard conditions, it is the least dense metal and the ...
alloys in the range 1.3-6.3 mm thick.
References
External links
*
{{Bain Capital
2004 establishments in Ohio
Aluminum companies of the United States
American companies established in 2004
Apollo Global Management companies
Bain Capital companies
Beachwood, Ohio
Companies that filed for Chapter 11 bankruptcy in 2009
Manufacturing companies based in Ohio
Manufacturing companies established in 2004
Oaktree Capital Management
TPG Capital companies
2020 mergers and acquisitions
American companies disestablished in 2020
Manufacturing companies disestablished in 2020
Defunct companies based in Ohio
Hindalco Industries
Aditya Birla Group