Phelps Dodge sells assets

In two separate transactions, copper producer Phelps Dodge (pd-n) is selling all of its specialty-chemicals business and part of its wire operations.

The specialty-chemicals division, Columbian Chemicals, will be sold to a private equity group affiliated with J.P. Morgan Chase & Co. and to South Korean chemical company DC Chemical. Columbian, which produces carbon black, has 12 such plants in nine countries.

DC and private equity firm One Equity Partners, will pay US$600 million, including US$115 million in Columbian’s cash balances.

The other sale sees the magnet-wire business of Phelps Dodge Wire & Cable sold to privately held Rea Magnet Wire for US$125 million. Rea Wire has also agreed to an offtake deal for copper rod from Phelps. Phelps Dodge said it expected most of the employees in its magnet wire plants (located in Indiana and Mexico) would continue with Rea, but it has allowed for some severance costs.

Phelps Dodge is keeping its technology centre in Fort Wayne, Ind., and a magnet-wire plant in China.