Hydro’s acquisition of Arconic's extrusion plants in Brazil completed
Today, Norsk Hydro’s acquisition of Arconic’s two extrusion plants in Brazil was completed, strengthening Hydro’s downstream position in Brazil and creating a solid platform for further growth.
The two extrusion plants in Utinga and Tubarão in southern Brazil have more than 600 employees in total, one casthouse, seven extrusion presses ranging from 7 to 14 inches, and value-added capabilities.
The transaction is in line with Hydro’s strategy of selected growth within its business area Extruded Solutions, and will strengthen Hydro’s downstream position in Brazil.
“We believe in the importance of being close to our customers to offer high quality customized extrusions and local support. With the acquisition of Utinga and Tubarão, Hydro will become the market leader in the Brazilian extrusion market”, says EVP and head of Extruded Solutions, former Sapa, Egil Hogna.
Strengthening the management team
Under the terms of the agreement, the price include a cash payment from Hydro of USD10 million, subject to working capital and other adjustments.
Hydro’s extruded solution division in South America will continue to be headed by Haroldo Chieza, with an extended management team including the Utinga and Tubarão plant managers. Extruded Solution in South America is part of the business unit Precision Tubing, headed by Senior Vice President and Head of PT Sergio Vendrasco.