Norsk Hydro: Hydro takes control of Soral aluminium plant
03 July 2014 - 4:07PM
Aluminium company Hydro and Rio Tinto Alcan (RTA) have
signed an agreement for Hydro to take over RTA's share of the
aluminium smelter Sør-Norge Aluminium AS (Søral) in Norway.
Following the closing of the agreement, the plant will become
Hydro's fifth fully owned aluminium smelter in Norway.
Søral is a primary aluminium plant situated in Husnes at the
Norwegian west coast, with an annual production capacity of about
180,000 metric tons primary aluminium. The plant, which has been
operated as a standalone unit, idled one of its two production
lines in 2009, and is currently producing around 90,000 tons
annually. Søral has 230 employees, and has prior to the agreement
been owned by Rio Tinto Alcan (50 percent) and Hydro (49.9
percent).
"We believe in the Norwegian aluminium industry. Søral is a well
invested plant, which on a comparable basis has a cost position in
line with the rest of our Norwegian smelters. A change in ownership
makes it possible to contribute even stronger in strengthening
operations," says Executive vice president and head of Primary
Metal, Hilde Merete Aasheim.
Søral's financial situation will be improved through short term
relief in costs. With these, and certain system effects of the
Hydro ownership, the company sees a more robust financial situation
for the plant going forward. "Hydro already has a strong primary
aluminium production base in Norway and we believe Søral will be a
valuable contribution to our portfolio. The plant fits well into
Hydro's high premium cast house product strategy," says
Aasheim.
Acknowledging the excellent historical collaboration between
Hydro and RTA, Arnaud Soirat, President and chief executive officer
of the Primary Metal division in RTA extends his gratitude towards
the employees of Søral. "Rio Tinto Alcan wishes to take this
opportunity to thank all Søral employees for their valued
contribution over the years," he says.
Closing of the transaction is pending, including approval from
relevant competition authorities in Norway and France, and is
expected in second half of 2014. Until closing of the agreement,
Søral will still be governed by the current board of directors. The
terms of the agreement are confidential.
Investor contact Contact Pål Kildemo Cellular +47 97096711
E-mail Pål.Kildemo@hydro.com
Press contact Contact Halvor Molland Cellular +47 92979797
E-mail Halvor.Molland@hydro.com
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