Hydro bids $345 million for Rio’s three aluminium plant

Norsk Hydro has made a $345 million binding offer to acquire Rio Tinto’s wholly owned Icelandic aluminium plant ISAL. The transaction also includes Rio's 53% stake in Dutch anode facility Aluminium & Chemie Rotterdam B.V. (Aluchemie), and 50% stake in Swedish aluminium fluoride plant Alufluor AB (Alufluor).

Hilde Merete Aasheim, Head of Hydro’s Primary Metal business area, said: “We see great potential in exchanging competence and technology elements between our aluminium plants. We are now running a technology pilot in Norway which aims to be the world’s most energy-efficient and climate friendly aluminium production facility. These innovations will be expanded to other Hydro facilities, and as part of Hydro, ISAL will benefit from such technological spin-offs and competence.”

Rio Tinto will launch a consultation process with employees, relevant European works councils and other stakeholders. The transaction is expected to close in the second quarter of 2018.

Rio Tinto Aluminium chief executive Alf Barrios said: “Hydro has a solid track record in the aluminium industry and is a partner to Rio Tinto in other ventures. ISAL, Aluchemie and Alufluor are a natural fit with Hydro’s portfolio and this transaction should secure the long term future for the sites and continued economic benefit for the wider communities”.

Hydro would increase its total capacity in primary aluminium production to 2.4 million tonnes in 2018.