"We believe in the integrated business model and Brazil is the country where Hydro's value chain is present. From bauxite and alumina, 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 combine more than 600 employees, 1 foundry, 7 presses ranging from 7 to 14 inches and value-added capacities.
The transaction is in line with Hydro's strategy of selective growth within its Extruded Products business area and will take Hydro to a stronger position in the Brazilian extrusion market.
"We believe in the importance of being close to our customers to offer high quality personalized extrusions and local support. With the acquisition of Utinga and Tubarão, Hydro will become a leader in the Brazilian extrusion market, says the Executive Vice President and leader of Extruded Products Solutions, Egil Hogna.
Under the terms of the contract, the price includes a cash payment from Hydro of approximately USD 10 million, subject to working capital and other adjustments.
The conclusion of the transaction is subject to approval by the competent authorities in Brazil and is expected in the first half of 2018.