Norsk Hydro Completes US$10-MM Deal for Alcoa’s Twin Aluminium Extrusion Plants in Southern Brazil
04 April 2018 by Staff
Norwegian aluminium producer Norsk Hydro A.S.A. announced yesterday the completion of its purchase of two aluminium extrusion plants originally owned by Arconic in southern Brazil.
The US$10-million deal dovetails with Hydro’s stated aim of increasing its presence in the field of extruded aluminium according to a statement released on the occasion of the sale. Hydro sees the acquisition of shoring up its downstream operations in the country.
The plants, located in Utinga and Tubarão, boast seven extrusion presses of between 7 and 14 inches, a casthouse, and value-added capabilities. Between them the plants employ over 600 individuals.
Executive Vice President and Head of Extruded Solutions, Egil Hogna believes the deal will propel Hydro to the front of Brazil’s pack of extrusion firms.
“We believe in the importance of being close to our customers to offer high-quality customized extrusions and local support. With the acquisition of Utinga and Tubarão, Hydro will become the market leader in the Brazilian extrusion market.”
Hydro says their South American extruded aluminium operations will continue to be led by Haroldo Chieza. Extruded aluminium operations on the continent falls under the purview of Hydro’s Precision Tubing business unit, which is helmed by Senior Vice President and Head of Precision Tubing Sergio Vendrasco.
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.