Arconic completes Russian operation sale

Arconic has completed the sale of 100 per cent of its Russian operations to Promishlennie Investitsii LLC, the majority owner of VSMPO-AVISMA Corporation, for cash proceeds of $230 million. The sale was completed after the transaction received all required approvals. Arconic Inc. split into two companies in early 2022: the light metal technology firm Arconic Corp. and Howmet Aerospace Inc., which is responsible for the wheel manufacturer Alcoa Wheels.

Cash held in Russia was not available for distribution to the parent company due to Federal Antimonopoly Service of The Russian Federation (“FAS”) litigation initiated in March 2020. Arconic sold the entities that were subject to the FAS restrictions and therefore considers its involvement in the FAS lawsuit to be resolved as a result of the divestiture.

Tim Myers, chief executive officer, said, “The assets of our Russian business have been restricted since prior to our emergence as a standalone company in April 2020. Operating in Russia only became more difficult and our ability to operate going forward became increasingly uncertain in light of the current geopolitical environment. This transaction supports our investments in future returns to our shareholders. I want to thank the remarkable team at our Russian operations that kept the facility running well through these most difficult circumstances.“