Hulamin buys rolling slab operation at Isizinda joint venture
Aluminium supplier has paid R65m in cash to secure the rolling slab operations at the Bayside Smelter, part of its joint venture with Bingelela
Aluminium supplier Hulamin, whose customers include Tesla, has bought the rolling slab assets of its Isizinda joint venture for R68.5m to secure production at the Bayside facility in KwaZulu-Natal.
Hulamin, via a subsidiary, holds 38.74% in Isizinda Aluminium, with the bulk of the remaining shares being held by Bingelela Capital.
Bingelela is exiting the rolling slab part of the business, but intends to produce other value-added products at the site, such as aluminium for vehicle wheels.
Isizinda owns the Bayside casthouse, which includes a rolling slab casting operation in Richards Bay, KwaZulu-Natal. In addition, Hulamin’s subsidiary has employed the personnel engaged in the Slab Business and assumed responsibility for employee liabilities of R6.1m.
The transaction has also seen Hulamin’s subsidiary advance R50m to Isizinda to pay dividends.
Isizinda was created as a partnership between Hulamin and Bingelela to purchase the operation from BHP Billiton in 2015.