Hydro Extruded Solutions AS has agreed to acquire the Latin America Extrusions (LAE) business from Arconic Inc., which includes two extrusion plants in Utinga and Tubarão in southern Brazil. Combined, the two plants have one casthouse, seven extrusion presses ranging from 7 to 14 inches and value-added capabilities, as well as more than 600 employees.
Hydro believes this acquisition will strengthen its downstream position in Brazil and create a solid platform for further growth. “We believe in the importance of being close to our customers to offer high quality customized extrusions and local support,” said Egil Hogna, executive vice president and head of Extruded Solutions. “With the acquisition of Utinga and Tubarão, Hydro will become the market leader in the Brazilian extrusion market.”
Svein Richard Brandtzæg, president and CEO of Hydro, added, “We believe in the integrated business model and Brazil is the country where Hydro’s entire value chain is present. From bauxite and alumina, via primary production to extruded solutions, this will strengthen our ability to serve our customers.”
Arconic believes the divestiture of its LAE will business enable the company to continue to streamline its business portfolio, reduce complexity, and further focus on its higher-margin products and continuous profitable growth.
Completion of the transaction is subject to approval from relevant competition authorities in Brazil, and is expected to close within the first half of 2018.