Aluminium producer Sapa will shut Hanover tubing plant

Downstream aluminium producer Sapa has announced that it will close its precision tubing plant in Hanover, Germany.

“After careful considerations, Sapa’s Precision Tubing business area has today started consultations with employees in Hanover, Germany, regarding a potential closure of its operations there,” the company said on Thursday February 13.

Sapa has made a number of restructurings and asset sales since agreeing with Norsk Hydro in October 2012 to combine their downstream operations. That restructuring effort has continued as the company seeks its optimal structure in today’s market conditions.

“Sapa has been through a process of evaluating possible restructuring measures to improve profitability and adjust to the current market situation, primarily in Europe,” it said. “Several options have been assessed across all regions.”

The Hanover plant employs 49 people in the production of aluminium tubes for the automotive market, from a total of 2,000 workers across 17 plants in Sapa’s precision tubing business.

“We are aware of the effect that this announcement will have on the affected employees and we intend to engage constructively with employees and union representatives,” Salvador Biosca, head of precision tubing, said.

“We remain committed to serving our customers in Europe, and will maintain a significant footprint in the markets in which we operate,” he added.

Sapa announced a net loss of Nkr280 million ($45.7 million) in the fourth quarter of 2013 – its first quarterly report since the company was formed from the joint venture with Hydro last year.