Aleris International Inc a producer of aluminum sheet, extrusions and various other products has an agreement to sell its US Zinc subsidiary to affiliates of Votorantim Metais Ltda for USD 295 million. The final price is subject to approvals and closing conditions.

US Zinc is arranged as five divisions in US
1. Its Zinc Oxide division is one of the world’s largest manufacturers of zinc oxide, with two US locations where it manufactures zinc oxide from high grade and special high grade zinc metal, as well as from secondary zinc
2. Its Zinc Metal division in Houston recycles secondary zinc, supplying the galvanizing industry
3. A trading arm
4. A zinc dust manufacturing unit
5. IZI, a recycler of zinc collected from continuous galvanizing dross.

In addition to its six US locations, US Zinc operates a new zinc oxide plant near Shanghai.

Mr Steven J Demetriou chairman & CEO of Aleris said that "The sale of US Zinc will allow Aleris to focus on our core aluminum business. We plan to use the net sale proceeds to reduce leverage. I would like to thank the US Zinc team for their significant contributions to Aleris."

Votorantim is a Brazilian mining and steelmaking group, with mines in Brazil and Peru producing zinc and nickel. It is reportedly the largest zinc producer in Latin America with output reaching 400,000 tones per year and production of nickel is listed at about 26,000 tonnes per year.