Sapa will close Belgian aluminium tubing plant

Downstream aluminium producer Sapa Group will close its aluminium tubing plant in Seneffe, Belgium, after evaluating a number of restructuring options, the company said on Thursday November 7.

“After careful consideration, Sapa Precision Tubing has today started consultations with employees [...] regarding a potential closure of operations at the Seneffe plant,” Sapa said.

After tying up with Norsk Hydro’s downstream aluminium business last year, Sapa sold its extrusion operations in Raufoss, Norway, including its affiliated fabrication plant in Vetlanda, Sweden, in order to obtain EU competition clearance for the merger.

Hydro likewise sold its aluminium rolling mill in Malaysia to Nippon Foil for $20 million last month as its focus shifted to European markets following the merger.

But the closure of the Seneffe plant has come about due to lack of profitability.

A process of evaluating possible restructuring measures to improve profitability did not yield a better option.

“We are aware of the impact that this announcement will have on the affected employees and we intend to engage constructively with employees and union representatives,” Salvador Biosca, president of Sapa's Precision Tubing business area, said in a statement.

“We remain committed to serving our customers in Europe, and will maintain a significant footprint.”