Rio Tinto, recognized as the world’s largest iron ore producer, is walking away from its aluminum metal matrix composites business — and handing its customers over to Canada’s Cymat Technologies in the process, Cymat announced Tuesday.
The two companies have formalized a commercial agreement between Cymat and Rio Tinto Alcan, the mining company’s aluminum division. Under the terms of the deal, Rio Tinto will turn over its entire commercial customer base to the Canadian firm.
As part of the financial arrangement, Cymat will pay Rio Tinto $750 for every metric ton of the composite material that is sold or used over a five-year period, with total payments capped at $500,000.
According to Cymat, Rio Tinto has spent more than 40 years producing and selling the specialized ceramic-infused aluminum material, which finds its primary use in the automotive and rail industries.
Among the customers being transferred are European brake disk manufacturers that supply commercial vehicle and rail markets, Cymat noted.
Rio Tinto had not responded to a request for comment at the time of this report.
