Rio Tinto Exits Aluminum Composites Business, Customers Move to Cymat
Rio Tinto Transfers MMC Customers to Cymat Technologies
July 21 (Reuters) - Rio Tinto has agreed to transfer customers from its aluminium metal matrix composites (MMC) business to Canada's Cymat Technologies, as the world's largest iron ore producer exits the business, Cymat said on Tuesday.
Details of the Commercial Agreement
• Cymat and Rio Tinto Alcan, the miner's aluminium division, signed a commercial deal, according to which Rio will hand over its commercial customer base to the Canadian firm.
Financial Terms of the Deal
• The deal is for Cymat to pay Rio Tinto $750 per metric ton of MMC sold or used over five years, capped at $500,000.
Background on Rio Tinto's MMC Business
• Rio Tinto has produced and sold the proprietary ceramic-infused aluminium material, which is used primarily in automotive and rail applications, for more than 40 years, Cymat said in its statement.
Key Customers and Applications
• Rio Tinto's MMC customers include European brake disk manufacturers supplying commercial vehicle and rail markets, Cymat added.
Company Response
• Rio Tinto didn't immediately respond to Reuters' request for comments.
Reporting Credits
(Reporting by Rajasik Mukherjee; Editing by Joyjeet Das)
