Rio sells off Alcan Cable

Rio Tinto has sold off its Alcan Cable business.

The miner announced that it will sell the subsidiary to General Cable Corporation for US$185 million.

The sale will close later this year.

Alcan Cable employs around 1050 people and has five manufacturing operations throughout North America and China.

This is not the first time the miner has sold its Alcan Cable division.

In 2009, Rio agreed to sell 56% of its Alcan Engineering cable division to US based investment firm Platinum Equity.

This divestment was the first time Rio had entered into an agreement with a private equity partner.

At the time Platinum partner Brian Wall, said the firm would provide Rio Tinto an opportunity to participate in the future recovery of the business without having to manage that recovery themselves.

“We will execute a carve-out and transition the business to a standalone entity,” he said.

Rio has slowly been selling off or closing its Alcan and alumina businesses as the aluminium industry faces a downturn.

It has been divesting alumina assets in Europe and the UK, after Rio CEO Tom Albanese stated that Alcan and alumina businesses are "no longer aligned with our strategy".

Despite this it has stated that the future of smelters such as Tasmania's Bell Bay smelter are not at risk.

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