Noranda plant in New Madrid, MO sold to Switzerland-based company
NEW MADRID COUNTY, MO (KFVS) - A Switzerland-based company might soon become the new owner of the property previously owned by Noranda in New Madrid, Missouri.
According to a memo from a Missouri bankruptcy court, ARG International is the successful bidder for the Noranda properties, bidding $13.7 million.
Back in February 2016, Noranda announced that technical difficulties forced the shutdown of a portion of its operations, and later caused them to file for bankruptcy. In June, the company announced that it would be auctioning off the plant in New Madrid.
Another company, MFR II, LLC, was listed as the backup bidder - allowing them to gain ownership of the assets in the event the deal with ARG falls through - bidding $13 million.
New Madrid City Administrator Richard McGill said officials from the county traveled to New York for the auction, held on Sept. 28.
McGill says investors from ARG International, which is a metals trading firm, are set to visit the plant in the coming weeks to tour the facility and assess options.
City leaders say the tentative purchase does not mean new jobs are a sure thing, but they are cautiously optimistic.
"We're still unsure of exactly what will happen, or what the intentions are of the company that won the bid," said McGill. "But, we are very hopeful and have been hopeful since March that someone would buy the building, re-open the plant and bring back some of the jobs that were lost in March."
The purchase of the company should become final in a St. Louis courtroom on Friday.
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