Sapa to sell Raufoss extrusion and Swedish assets to SKA Invest

Sapa AS has signed an agreement with Norwegian company SKA Invest AS to sell its extrusion operations in Raufoss, Norway, including its affiliated fabrication plant in Vetlanda, Sweden. The sale is part of the remedies proposed by Hydro to obtain EU competition clearance for the aluminium extrusions joint venture.

September 11, 2013

Under the agreement, SKA Invest will buy the former Hydro Aluminium Profiler AS extrusion plant at Raufoss, including its affiliated fabrication plant in Vetlanda, Sweden. SKA earlier acquired other businesses from Hydro – Hydal, Extrusion Tools and Hytrans.

"SKA Invest has in the past acquired several extrusion-related businesses from Hydro and all have experienced good development under their ownership. This is a good solution for employees, customers and Sapa," says Sapa CEO Svein Tore Holsether.

The Raufoss extrusion plant consists of three extrusion presses with a total capacity of around 30,000 metric tons. The unit has administration, sales, extrusion, and surface treatment and employs around 170 people. The affiliated plant in Sweden employs around 40 people, with functions for sales and customer support, and a unit for fabrication and processing of aluminium extrusions.

"The operations at Raufoss and the fabrication unit in Sweden will complete our value chain from die making to the production of extrusions, and contribute to added value and finished products. We believe this will be a strong and vital group of companies, with Raufoss including its fabrication unit in Sweden at the core," says SKA Invest CEO Ståle Karlsen.

Approval from the EU Commission for the merger between Hydro's extrusion operation and Sapa, which closed on September 1, was conditional on a sale of Hydro's aluminium profile operations at Raufoss in Norway and its affiliated fabrication plant in Sweden, as well as Sapa's multi-port extrusion operations in Harderwijk in the Netherlands. The process to sell Sapa's operations in Harderwijk is still ongoing.

Completion of the transaction between SKA Invest and Sapa is dependent upon approval by the EU Commission.

Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management's plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar statements.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors.

No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: October 11, 2016