On Tuesday, February 1, Hydro completed the sale of its aluminium extrusion plant in Kuppam, India, to Hindalco Industries Limited, as was expected in the first quarter of 2022.
On December 17, Hydro had signed a Business Transfer Agreement to sell its extrusion operations in Kuppam to Hindalco for US$33 million or INR 247 crore. The transaction was structured as an asset sale and included Kuppam plant with approx. 245 direct employees and 224 contract employees.
Hydro’s Kuppam extrusion plant in Andhra Pradesh, India, has a production capacity of 15,000-tonne of aluminium extrusions and is integrated with advanced value-added capabilities for surface finishing and fabrication.
The customised aluminium extrusion products manufactured at the plant primarily cater to auto, building and construction sector, and industrial applications.
During the signing of the agreement, Erik Fossum, SVP & Head of Precision Tubing in Hydro, 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.”
Satish Pai, Managing Director of Hindalco, said: “The acquisition of the Kuppam plant is a strategic step to expand the company's 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.”
Responses
