Hydro sells Norcable stake

(Feb. 2, 2004) Nexans Norway AS has agreed to purchase Hydro's 50 percent ownership share in the Norwegian cable producer Norcable AS. The transaction took effect on January 30.

As a result of the acquisition, Norcable AS becomes a wholly owned subsidiary of Nexans Norway AS.

Norcable AS, which is located in Karmøy, was a 50/50 joint venture owned by Nexans and Hydro since the venture's establishment in 1971. The company manufactures aluminium line and cable conductors, and had sales of NOK 155 million (EUR 17.8 million) in 2003. Norcable has 29 employees.

Cable production is not a key business area within Hydro Aluminium. On the other hand, Nexan uses Norcable's products in its own cable production, and the joint venture's two owners agreed that the company's development would best be served as a fully integrated unit in the Nexans group.

Hydro Aluminium will continue to supply metal to Norcable for its production.