A deal is in the works for a Swedish firm to buy Indalex Aluminum Solutions.
Papers filed in U.S. Bankruptcy Court in Delaware Monday show that the Swedish company Sapa is awaiting approval on a deal to buy 10 active Indalex plants - six in the United States and four in Canada.
Sapa officials did not respond to an e-mail seeking comment.
Scott Langdon, an Indalex spokesman, said that the Girard and Niles plants, which were closed, are not part of the deal because they are not considered active plants. However, he said the bankruptcy court gave Sapa and Indalex until July 31 to work out arrangements for the possible sale of the Girard plant to May Extrusion.
Papers in bankruptcy court show that if a sale of the Girard plant can be worked out, the proceeds will be given to Sapa. Indalex filed for Chapter 11 bankruptcy in March.
If that can be worked out, a deadline of Jan. 21, 2010, will be in place for a sale between Indalex and May Extrusions, Langdon said. Court papers say that if a deal can not be worked out, Sapa will take control of the property free of any liens or encumberances. Indalex is asking $3 million for the plant, the papers show.
In January of 2008, the Indalex plant in Girard shuttered its doors, throwing 300 people out of work, followed by the closing in April of 2008 of the Niles Indalex plant.
Girard Mayor James Melfi said he has heard that the company may be sold, but he had no details. He said he hopes there are plans for the Girard plant to reopen should the purchase be made.
''What we're hoping for is with an upturn in business is that the company will utilize that building for manufacturing,'' Melfi said.
No mention of the Niles plant could be found in court documents.
According to its Web site, Sapa is the largest aluminum profiles producer in the world and specializes in light weight material aluminum. Worldwide they have 12,000 employees and are part of the Norwegian firm Orkla ASA.
A news release by Sapa said they anticipated the sale would close by July 31. The release said the sale of all 10 plants gives Sapa 29 presses with a capacity of 310,000 tons a year for aluminum.