Hydro initiates restructuring; parts of foil production to close in Germany

Hydro has decided to initiate a comprehensive restructuring program in its rolling business in a bid to reduce costs and improve profitability. This will lead to redundancy of up to 735 full time equivalents (FTEs).

The restructuring, expected to cost around €160 million, includes the planned closure of parts of the foil production at Grevenbroich as well as efficiency measures across the organization.

Hydro said the total restructuring consists of a planned reduction of personnel cost of up to €60 million per year. Out of the total cost, €100 million to €120 million will be taken as a provision in Q3 2019. 

“Our cost position in parts of our foil business is too high, mainly due to manning-intensive and manual production processes, and we are also facing strong competition in this market segment. As a consequence, we are planning to close our foil mainline,” said Einar Glomnes, Executive Vice President Rolled Products. 

Hydro said its Rolled Products will further strengthen its focus on growth markets, such as automotive and can business. The company has recently made investments in the new Automotive Line 3 at Grevenbroich as well as a state-of-the-art recycling facility for used beverage cans in Neuss.

“Our products are well perceived by our customers. This feedback is rooted in our high-quality products and product consistency as well as our secure supply and timely deliveries. It is now on us to turn our strength into better results,” added Glomnes.