24 September 2009

Rio Tinto sells off building materials unit

In a continuing effort to reduce debt, Anglo-Australian mining giant Rio Tinto will pick up $349 million as it sold off its building materials manufacturer Alcan Composites to Swiss machinery producer Schweiter Technologies.

Alcan Composites, which makes building materials used in wind farms and display facades, has 16 factories in Switzerland, Germany, the U.S., South America, China, and India.

The sale comes as London-based Rio Tinto continues to pay down its massive debt, mostly because of its purchase of Canadian aluminum giant Alcan Inc. in 2007 for $38 billion, a burden made worse by the credit crunch and global downturn.

Rio Tinto’s asset sales total $7 billion since March 2008.

The sale of Sins, Switzerland-based Alcan Composites will close by the end of the year.

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