Norwegian aluminium producer Norsk Hydro ASA yesterday announced the signing of an agreement with Austrian firm Hammerer Aluminium Industries (HAI) to sell Romanian extrusion plant Hydro Extrusion SRL.
Terms of the transaction were not released, but Hydro indicated that the sale would likely be complete by year’s end. Hydro indicated that the decision to sell was an outgrowth of its top-to-bottom review of its Extruded Solutions segment, as the firm is currently attempting to optimize and streamline that portfolio.
The plant, which is located in the western Transylvania city of Chișineu-Criș, has a work force of around 200 and a nameplate capacity of 20 thousand metric tons per annum. It was built in 2004 as a greenfield investment, and its primary products consist of extruded profiles for the building and construction industry. The plant reported a net loss of €1.3 million in 2017.
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.