The transaction is structured as an asset sale and includes the Kuppam plant with approximately 245 direct employees and around 224 contract employees.
“With execution of the Business Transfer Agreement with Hindalco, we are sure that the extrusion business in Kuppam will continue its development under the new ownership. This is a good outcome for Hydro, Hindalco and the employees in Kuppam, who will continue their efforts to grow further in a new, dedicated downstream company,” says Erik Fossum, SVP & Head of Precision Tubing in Hydro.
Hydro remains committed to the precision tubing markets, as well as to the general extrusion and fabrication operations and will have a strong footprint worldwide, maintaining its close cooperation with customers.
Closing of the sale is expected to take place during the first quarter 2022.