Ohio-based aluminum giant Aleris has released their second quarter numbers on the heels of their takeover of German casting house Voerde. Compared to last year’s second quarter the company’s net income has decreased from $56 million to $34 million.
However, as income dropped, the company has still managed to expand their operations as their capital expenditures increased to $96 million. One such expansion was the takeover of Voerde, which has supplied billet and ingot to Aleris for a number of years. Voerde was insolvent at the time of the takeover.
“These are strategic assets to Aleris. The cast house provides Aleris the flexibility to continue to develop and deliver high value-added proprietary alloys for our customers, and further enhances our recycling and sustainability efforts,” said Roeland Baan, Aleris executive vice president and chief executive officer, Global Rolled & Extruded Products. “It also assures that we will have an uninterrupted supply of product to meet increasing customer demand.”
In addition to the acquisition of Voerde, Aleris has also been expanding its capital in other areas, including the building of a rolling mill in Zhenjiang, China. Construction of the China facility is expected to be completed by the end of the year with production planned to start in the first quarter of 2013.