[ad_1]
(RTTNews) – AZZ Inc. (AZZ) announced plan to construct a new aluminum coil coating facility near St. Louis, Missouri. The facility will be located in the new Oldenburg Industrial Park in Washington, Missouri and is expected to be operational in 2025. AZZ Precoat Metals has secured long-term contractual customer commitments for over 75% of the new capacity, the company stated.
Tom Ferguson, CEO of AZZ Inc., said: “The addition of the Washington coil coating facility with state-of-the-art equipment and technology will strengthen Precoat’s position to effectively serve the growing aluminum market. This project was contemplated in our strategic rationale for acquiring Precoat Metals earlier this year and is a key element of our growth roadmap for the coil coating segment.”
The company noted that the project will not have a material impact on its debt leverage nor previously stated goal of 3.0x debt leverage by 2024. The company estimates sales of at least $60 million by 2026 with an EBITDA margin that nicely exceeds the fleet average for Precoat and is well above AZZ’s internal rate of return.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
[ad_2]
Image and article originally from www.nasdaq.com. Read the original article here.