CPIC, based in Chongqing, China, is a manufacturer of glass fibre reinforcements, including roving, mat, multiaxial fabric and chopped strand.
| We believe that this is an important step towards successfully implementing our business strategy to be a world-class producer of advanced materials. |
| Richard Jenkins, Interim CEO, AGY |
“This divestiture allows us to focus on delivering value to our customers with products produced in the US, including our fine yarns and S-2 Glass® products," says Richard Jenkins, Interim CEO of AGY.
AGY, headquartered in Aiken, South Carolina, notes that despite the sale of the Shanghai division, it will continue to focus on the growing speciality electronics yarn markets.
The transaction will result in a reduction in non-recourse debt totaling $38.8 million at 31 March 2013.
The company’s AGY US and AGY Asia operating segments are managed separately based on differences in their manufacturing and technology capabilities, products and services and their end-markets, as well as their distinct financing agreements.
During the first quarter of 2013, AGY Asia production output accounted for less than 0.7% of the sales recognised by the AGY US segment.
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