The closure is due to the challenging European market, particularly in trailer construction, which represents a large part of the production in Drunen. Despite several measures taken recent years to improve the situation, it has not been possible to turn the negative development.
The closure will affect around 40 employees and is expected to be completed by Q1 2020. Employees, the Works Council, trade unions and other stakeholders have been informed and Hydro will work hard to ensure the restructuring process is carried out in a professional and respectful way for all parties involved.
At the same time, Hydro has decided to invest €4.4 million in new machinery in the Pole Products business unit in Drunen to strengthen the competitive position in the market and ensure continued operations in Drunen.
The Pole Products business unit produces and ships light poles, flagpoles, traffic control installations and mast for “smart city” applications in a broad sense. The raw materials, pipes, are supplied from the extrusion unit in Drunen.
The Pole Products business unit will be relocated and integrated into the extrusion unit. The relocation will lead to logistical and production-technical benefits, as well as other business benefits that in total will strengthen the competitive position for Hydro in Drunen.
In addition to the operations in Drunen, Hydro also has production facilities in Harderwijk and Hoogezand in the Netherlands, supplying innovative products and solutions to aluminium extrusion customers.
The product range includes components for transport systems, parts for niches in the automotive industry, transport sector, construction products, ingot and end products such as greenhouse cover and façade systems, light and flagpoles.