Norsk Hydro: Hydro acquires Arconic's extrusion plants in Brazil
09 December 2017 - 12:35AM
Hydro Extruded Solutions AS has agreed with Arconic to
acquire its two extrusion plants in Brazil. The agreement will
strengthen Hydro's downstream position in Brazil and create
a solid platform for further growth.
"We believe in the integrated business model and Brazil is the
country where Hydro's entire value chain is present. From bauxite
and alumina, via primary production to extruded solutions, this
will strengthen our ability to serve our customers," says President
and CEO Svein Richard Brandtzæg.
The two extrusion plants in Utinga and Tubarão in southern
Brazil have combined more than 600 employees, 1 cast house, 7
presses ranging from 7 to 14 inches and value-added
capabilities.
The transaction is in line with Hydro's strategy of selected
growth within its business area Extruded Solutions, and will
further strengthen Hydro's position in Brazil.
"We believe in the importance of being close to our customers to
offer high quality customized extrusionsand local support. With the
acquisition of Utinga and Tubarão, Hydro will become the market
leader in the Brazilian extrusion market," says EVP and head of
Extruded Solutions, Egil Hogna.
Under the terms of the agreement, the price include a cash
payment from Hydro of $10 million, subject to working capital and
other adjustments.
Completion of the transaction is subject to approval from
relevant competition authorities in Brazil, and is expected within
the first half of 2018.
Investor contactEven Simonsen +47
97953364Even.Simonsen@hydro.com
Media contactHalvor Molland
+47 92979797 Halvor.Molland@hydro.com
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