Hindalco to acquire Norsk Hydro’s Kuppam aluminium extrusion plant
Hindalco Industries Limited has agreed to acquire the aluminium extrusion operations of Norwegian aluminium and renewable energy company Norsk Hydro in Kuppam, Andhra Pradesh, India for $33 million.
The deal includes the sale of Kuppam aluminium extrusion plant that employs nearly 245 direct employees and approximately 224 contract employees.
Erik Fossum — Norsk Hydro SVP and Head of Precision Tubing said: “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.”
Norsk Hydro said that it will continue to be focused on the precision tubing markets and the general extrusion and fabrication operations. The aluminium and renewable energy company intends to have a strong presence globally.
Its 15,000-ton Kuppam aluminium extrusion plant is said to be integrated with advanced value addition capabilities for carrying out fabrication and surface finishing.
The facility provides customized aluminium extrusion products and solutions for automobiles, building and construction, and industrial applications.
Hindalco Industries said that the acquisition will extend its presence in South India further.
Satish Pai — Managing Director of Hindalco Industries said: “The acquisition of the Kuppam plant is a strategic step to expand our presence in the upper-end of the value-added market. The plant’s specialised product portfolio will enhance our capabilities in high-end extrusions and fabricated solutions.
“The acquisition is the latest step in our long-term strategy to augment our downstream business. Over the past year, we have already announced a total capex of ₹3,730 crore towards addition of downstream capacities at Silvassa and Hirakud. Our recent acquisition of the Ryker copper wire rod unit for our Copper value-added portfolio is also in line with this strategy.”
The closing of the deal is likely to occur during Q1 2022.