“We believe in the integrated business model and Brazil is the country where Hydro’s entire value chain is present. From bauxite and alumina, via primary production to extruded solutions, this will strengthen our ability to serve our customers,” says President and CEO Svein Richard Brandtzæg.
The two extrusion plants in Utinga and Tubarão in southern Brazil have combined more than 600 employees, 1 cast house, 7 presses ranging from 7 to 14 inches and value-added capabilities.
The transaction is in line with Hydro’s strategy of selected growth within its business area Extruded Solutions, and will further strengthen Hydro’s position in Brazil.
“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, says EVP and head of Extruded Solutions, Egil Hogna.
Under the terms of the agreement, the price include a cash payment from Hydro of $10 million, subject to working capital and other adjustments.
Completion of the transaction is subject to approval from relevant competition authorities in Brazil, and is expected within the first half of 2018.