Norwegian aluminium smelter Norsk Hydro ASA announced earlier this week the sale of its subsidiary Hydro Precision Tubing Lichtervelde (HPTL) to Aurelius Group. The move is part of the firm’s wider strategy of restructuring its Hydro Extrusions business area.
The firm said that the sale would likely close by the end of the quarter. No financial details were disclosed in the relevant press release.
Bruno D’hondt, Senior Vice President of Hydro Extrusions Europe, elaborated upon the reasoning for the sale.
“We are proud of the progress of the welded tubes operation since the integration in Sapa and subsequent full Hydro ownership. The business has been particularly resilient through last year’s crisis, continuing to grow and deliver world-class products to both existing and new customers. After careful review we have come to the conclusion that the welded tubes business is better suited to reach its full potential under new ownership. Aurelius with its dedication and focus on welded tubes is well-equipped to further grow the business.”
Gilles van Kooten, Managing Director and Head of Benelux of the Aurelius Group, noted the benefits to his firm in taking on HPTL.
“Aurelius views HPTL as a leading player in the European market for welded aluminum tubes due to its vertical integration and circular capabilities. HPTL’s high-quality and reliable offering, strong commercial capabilities, customer relationships, and commitment to a low environmental footprint makes it a long-term and highly attractive investment. Aurelius looks forward to providing both financial and entrepreneurial support to the Business and establish it as a strong and independent company that is able to grow.”
Based in Belgium, HPTL specializes in producing welded aluminium tubes for HVAC, industrial products, and other areas. The cast house, rolling mill, and four tube lines are staffed by 185 employees. It was founded as Remi Claeys in 1947 and acquired by Sapa in 2003. HPTL will revert to its original name upon completion of the sale.