Hydro acquires German aluminium extrusion maker Hueck to strengthen its European portfolio

Hydro has signed an agreement with the Germany-based family-run building systems and extrusions enterprise, Hueck, with an investment plan of almost ₹60.3 million. This ownership might elevate Hydro's position in the German and European aluminium extrusion market while promoting their combined expertise in the genre.

The investment will have a proportional division allotted for each operational necessity, from net debt management to usual working capital. 

The Executive Vice President of Hydro Extrusions, Paul Warton, pointed out: "Hueck is well positioned in Germany to serve the European building systems and extrusions market and will fit well into Hydro Extrusions. The acquisition will strengthen our ability to provide a quality service offering to European customers with an even broader product range."

Hueck System GmbH is an aluminium firm that provides extruded aluminium profiles for various integrated sectors. It has business activities worldwide with prominent expertise in producing and delivering aluminium profile solutions for doors, windows and façade construction. Hueck has locations in Lüdenscheid, Germany, with an employee count of almost 500 people.

In 2021, Hueck reported a collective revenue of ₹172 million and an EBITDA of ₹12.8 million. The company's building systems division can add valuable output for Hydro's construction systems brand WICONA, which has operations spread across the European construction market. Hueck's 12 and 8-inch extrusion presses can be considered robust additions to Hydro's extrusion capability in Europe, and the acquired cast house also flaunts a per capita production ability of 50,000 tonnes. 

"Hydro Extrusions' focus is on sustainability, local supply and a high service level. The acquisition will complement this, along with having the best people and a focus on their safety and the quality of the products they deliver. Together, we believe we can be the partner our customers need to reach their goals," concluded Warton.

Germany has the most tremendous demand for building solutions and aluminium extruded profiles in the whole of the European sub-continent. After the power transfer, Hydro will become the proud owner of five extrusion units, three recycling operations and a total of 2,000 employees in the entire country. Among these, only 200 can be deemed as technicians as they have proper skills to make doors, windows and facades for the construction sector.

The completion authorities in Germany and Austria will probably certify the transaction, which is scheduled to be finished by the first quarter of 2023.