"We are very pleased that we have found an industrial buyer who brings both ambition, expertise and financial muscle to further develop structures," explains CEO Johnny Undeli, who is responsible for the Extruded Products business area. He adds that the negotiations have been going on for several months and that the employees have known for some time that a sale can be considered.

Structures is part of Hydro's automotive sector and has significant operations in Raufoss, Norway, and plants in China, Denmark, Germany, France, Korea, Sweden, the Czech Republic and the United States. Hydro is a leading supplier of bumpers, advanced roll bars and other crash management systems, as well as other structural components made of aluminum for the automotive industry. Most leading automakers are on the customer list, including Audi, BMW, Ford, GM, Honda, Jaguar, Mercedes and Toyota.

Auto parts as a core business

CEO Svein Richard Brandtzæg emphasizes that Structures is now being given an owner with whom auto parts are the core business. In Hydro, the unit accounted for about two percent of total sales. In the Benteler Group, more than 70 percent of the business is focused on the automotive industry.

“Car manufacturers are increasingly interested in suppliers who can offer lighter system solutions, regardless of the material. This means that suppliers should be able to deliver solutions that combine materials such as steel and composite materials in addition to aluminum. This is an area that is not part of our strategic objectives, ”said Brandtzæg.

75 years in the automotive business

The Benteler Group was founded over 130 years ago and is still family-owned, now in the fourth generation. It began with the opening of an ironmongery by Carl Benteler in 1876, and over the past 75 years the company has developed into one of the largest suppliers to the international automotive industry. Virtually all automakers are on the company's customer list. Before taking over Hydro's bumper business, Benteler employed 24,280 people in 150 plants in 35 countries. Sales in 2008 amounted to a good six billion euros.

Up to now, Benteler has mainly manufactured and sold auto parts made of steel and partly of composite materials. Now the company wants to add aluminum parts to its product range - in line with the automotive industry's demand for lighter and more environmentally friendly solutions.

Made for each other

"The takeover of Structures is a good solution for Benteler's strategic ambitions to rely more heavily on lightweight auto parts made of aluminum," said Undeli. “You have analyzed Hydro's automotive business very thoroughly and we are sure that Benteler will be a good owner who will continue to develop the extremely competent organization. I think the company has enough strength to make the business even more attractive and profitable in the long run, ”says Undeli.

Hydro has previously considered selling its automotive business but has not found a solvent buyer who could offer a satisfactory industrial solution.

Good trend

"We have significantly streamlined and reorganized the automotive business in recent months.

This has helped improve financial results despite the economic downturn. This can also be clearly seen in the third quarter results presented today. After operating this business for years without satisfactory economic results, we feel confident that a new owner, who mainly supplies the automotive industry, will bring the necessary automotive-related expertise to achieve greater profitability and clout, "said Johnny Undeli.

Both he and Svein Richard Brandtzæg emphasize the constructive cooperation with the member representatives during this process. They are also very happy that Structures' results have improved significantly in recent months.

This is the result of the extraordinary efforts of all employee groups in a very difficult market situation. And it is a good starting point if the business gets a new owner in just over two months. However, the transaction must first be approved by the competition authorities.

Still important for auto parts

Brandtzæg underlines that Hydro will remain an important supplier of aluminum as well as rolled and extruded products to the automotive and transport industries after this sale, but that the company will from now on supply fewer parts directly for the assembly lines of the car manufacturers .

"Cars and transport continue to be a key growth area for us," said Brandtzæg.

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