Tredegar sells Canadian aluminum extrusions

Tredegar announced on the 7th that its Canadian aluminum extrusion operations will be sold for $25 million to HXP Capital's subsidiary, WXP Holdings.

Tredegar will likely receive approximately $11 million in taxable profits from the transaction.

Tredegar also said that it intends to invest US$24 million in the next 18 months to increase its aluminum extrusion plant in Carthage, Tennessee, to 5,500 tons to serve the non-residential construction market.

John D. Gottwald, President and CEO of Tredegar, stated: “This transaction will bring cash benefits and eliminate the losses caused by the increase in cost caused by the appreciation of the Canadian dollar last year. About 60% of our aluminum extrusion products are used in non-residential buildings in the United States. Industry, the expansion of the Carthage aluminum plant will ease our restrictions in this area."

It is reported that Tredegar is expected to announce its fourth-quarter 2007 income after the conclusion of the transaction. In addition, the company also announced that the board of directors approved a plan to buy back 5 million shares of its common stock.