Hydro, Sapa sign new long-term metal supply contract
Norsk Hydro ASA (“Hydro”) and Sapa AS have signed a new metal supply contract for Europe to continue the long-term cooperation beyond the expiration of the current metal supply agreement between the parties.
The current metal supply agreement was signed as part of the joint venture agreement between Hydro and Orkla ASA in 2013, and will expire by the end of 2016 when the new metal supply agreement comes into effect.
“To Sapa, our suppliers are important business partners and metal suppliers are of course at the core. Hydro and Sapa share the same values, geographical footprint, market share in Europe, and have a joint ambition to develop high value-added aluminium solutions which makes this long-term agreement a strategic fit,” says Peter den Dikken, VP Global Strategic Sourcing Sapa AS.
“The agreement, which is based on an open-ended contract and a volume commitment range of 250 to 300 kmt that can be adjusted year-by-year, gives Sapa both the stability and flexibility needed in our metal supply to support our business going forward,” says Egil Hogna, Sapa’s President & CEO.
“For Hydro the relationship with Sapa is of very high importance. We are very happy to be given the opportunity to continue to serve Sapa with products of excellent quality and we think the strategic fit of this agreement is very strong for both parties,” says Erik Fossum, SVP Head of Commercial in Hydro Primary Metal.
The metal supply agreement has been approved by the general meeting of Sapa AS in accordance with the Norwegian Limited Liability Companies Act of 1997 section 3-8, cf. section 2-6, as Hydro owns 50% of the shares in Sapa AS.