Rackwitz plants welcome new neighbor

(Nov. 25, 2003) Hydro is to divest a huge part of its industrial area in Rackwitz, Germany, enabling other businesses to establish as new neighbors to Hydro Aluminium´s successful remelt casthouse and extrusion plant. The contract has been signed a few days ago.

Aluminium activities in Rackwitz had started back in 1925, and history after the German reunion in 1990 led to backruptcy of a former company. When Hydro acquired the area and facilities in 1996, it had to revive, restructure and modernise.

This culminated in a success story. The remelt casthouse Hydro Aluminium Rackwitz since has more than doubled its capacity to more than 50,000 tpy and is targeting for 55,000 tpy in 2004. This October, it set a new production record with 5,608 tons in one month – and all the time remarkably improved its productivity. As well, the extrusion plant, an affiliate to Hydro Aluminium Uphusen near Bremen, Germany, has increased productivity and volumes to 25,000 tpy. Today, Hydro employs a workforce of 170 in Rackwitz.

By divesting almost half of the 250,000 square metres at Rackwitz, Hydro is setting an end to the restructuring process for that area. The neighbor found is an automotive supplier with an integrated automotive technology center. The sale contract also allows the regional authorities to release a fund of  €16 million for the refurbishment of the whole site. This will help to create interim storages for new cars produced by BMW and Porsche in Leipzig nearby.

Hydro managers and the local administration expect this transaction to be followed by the settlement of other companies like module manufacturers or system suppliers, foremost to the automotive industry. Also it is highly appreciated that this boom at the Rackwitz site can help to reduce the grievous unemployment in that region of the former GDR.