11 June 2013
11 June 2013
AGY Hong Kong has entered into an agreement to sell its 100% equity interest in AGY Shanghai Technology to Chongqing Polycomp International Corporation (CPIC) for an amount in the region of US$1 million.
“We are very pleased to announce the agreement with CPIC to purchase our Shanghai business unit,” said Richard Jenkins, Interim CEO of AGY. “This divestiture allows us to focus on delivering value to our customers with products produced in the US, including our fine yarns and S-2 Glass products. We believe that this is an important step towards successfully implementing our business strategy to be a world-class producer of advanced materials.”
Drew Walker, President of AGY, added, “Despite the sale of the Shanghai division, AGY will continue to focus on the rapidly growing specialty-electronics yarn markets. AGY offers a valuable and expanding product set to meet the growing demand for new high-value glass that stems from the growth of next-generation mobile communications devices.”
The transaction will result in a reduction in non-recourse debt totalling $38.8 million at March 31, 2013. The company’s AGY US and AGY Asia operating segments are managed separately based on differences in their manufacturing and technology capabilities, products and services, as well as their end-markets and distinct financing agreements. During the first quarter of 2013, AGY Asia production output accounted for less than 0.7% of the sales recognised by the AGY US segment.