Rio Tinto exits aluminum composites business, transfers customers to Canada's Cymat
Rio Tinto exits aluminum composites business, transfers customers to Canada's Cymat July 21 (Reuters) - Rio Tinto RIO.L has agreed to transfer customers from its aluminium metal matrix composites (MMC) business to Canada's Cymat Technologies CYM.V, as the world's largest iron ore producer exits the business, Cymat said on Tuesday.
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.
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.
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.
Rio Tinto's MMC customers include European brake disk manufacturers supplying commercial vehicle and rail markets, Cymat added.
Rio Tinto didn't immediately respond to Reuters' request for comments.
(Reporting by Rajasik Mukherjee; Editing by Joyjeet Das)
((Rajasik.Mukherjee@thomsonreuters.com;))