Hydro already owns 50% of the shares in Vigeland Metal Refinery and is the only buyer of the high-purity aluminum produced there.
High-purity aluminum is an important component for semiconductors and various electronic parts such as LCD screens for TV sets, computers, cell phones and tablet PCs.
The metal smelter fits very well into Hydro's product strategy designed for growth in value, says the head of the business unit Primary Metal Hilde Merete Aasheim.
The head of Energy and Corporate Business Development Arvid Moss underlines that this takeover is a very good example of cross-business cooperation at Hydro."The Vigeland transaction, which also includes a nearby hydropower plant that supplies the aluminum smelter with electricity, is in line with Hydro's business model as an integrated aluminum company," he says.
The transaction will be submitted to the Norwegian anti-trust authorities and Hydro will also file an application to take over AS Vigelands Brug's hydropower plants.
Vigeland Metal Refinery is located in Vennesla on the lower part of the Otra River. Organizationally, the company with a production capacity of 8,500 tons of aluminum with a purity of 99.99 - 99.999% belongs to the Primary Metal business area. The neighboring hydropower plant AS Vigelands Brug generates about 180 GWh in a normal year.
Vigeland Brug was originally built as a sawmill in 1621. Hydropower generation started in 1907 and aluminum production the following year. This makes Vigeland the oldest aluminum smelter in Norway that is still in operation.
|(Photo: Øyvind Breivik)|