Norsk Hydro has revealed its plans for a major restructuring of its European Extrusions business, putting forward a proposal to close five manufacturing sites across the region. The company says the move is intended to consolidate its footprint and reinforce competitiveness in what it describes as a challenging market environment.
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As per the official disclosure by the brand, operations would cease at Hydro Extrusions’ plants in Cheltenham and Bedwas in the UK, Lüdenscheid in Germany, Feltre in Italy, and Drunen in the Netherlands. Consultations with employee representatives are set to begin immediately, and if the plans are confirmed, the facilities will shut down in 2026.
The company states that an extensive assessment of market conditions and the performance of its extrusion network led to the decision, which aims to strengthen the long-term resilience of its European business.
President and CEO Eivind Kallevik acknowledged the weight of the move, saying, “The reality in the European market requires decisive action. Decisions like this never come easy, but they are necessary. We will carry out the process with full focus on safety, and with a commitment to treat everyone affected fairly and with respect.”
“Altogether, 730 employees would be impacted. Across the five sites, Hydro currently operates eight extrusion presses, a range of value-added processing lines, and three recycling units. Kallevik stressed that, despite the consolidation, Hydro intends to maintain a “strong presence” in Europe and continue delivering high service levels to customers.
The company confirmed that the proposal would not compromise its commitments to clients. Should the closures proceed, production for customers currently served by the affected plants would be transferred to other Hydro facilities. Hydro Pole Products, which is part of the Drunen operation, is not included in the restructuring plan.
Following the changes, Hydro’s Extrusion Europe unit would comprise 28 extrusion plants, five recycling facilities, and a workforce of around 7,000 employees.
The financial impact of the restructuring is estimated at NOK 1.9 billion (USD 188 million). This includes NOK 460 million (USD 46 million) in impairment charges and NOK 1.25 billion (USD 125 million) in provisions expected to be recognised in the fourth quarter of 2025. The company anticipates a NOK 50-100 million (USD 4.9-10 million) impact on Adjusted EBITDA in the same quarter. In the long run, Hydro expects the restructuring to deliver annual run-rate improvements exceeding NOK 0.5 billion (USD 49 million).
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