11. December 2017 | Industry

Arconic sells its Latin America extrusions business to Hydro

Arconic Inc. has sold its Latin America Extrusions (LAE) business to Hydro. The divestiture is part of Arconic’s drive to streamline its business portfolio, reduce complexity and further focus on its higher-margin products and continuous profitable growth. Under the terms of the agreement, Arconic will receive around USD10m in cash for the LAE business, subject to working capital and other adjustments. Depending on customary regulatory and anti-trust reviews, the deal is expected to close in the first half of 2018.

After having acquired full ownership of extrusion specialist Sapa, Hydro now reaches for leadership on the Brazilian extrusion market

The LAE includes two extrusion plants in Utinga and Tubarão in southern Brazil, with a combined workforce of 600 people, a casthouse, seven presses ranging from 7 to 14 inches and value-added capabilities. The transaction is in line with Hydro’s strategy of selected growth within its Extruded Solutions division. “With the acquisition of Utinga and Tubarão, Hydro will become the market leader in the Brazilian extrusion market,” says Egil Hogna, head of Extruded Solutions.