Despite recently made investments into the Moultrie (USA) aluminium extrusions plant, Norsk Hydro have decided to close the facility by the end of 2002 due to continued low levels of business. A weak market has been largely responsible for this situation.
Other reasons that have precipitated this decision revolve around Hydro’s acquisition of the VAW group earlier this year. Through this acquisition, Hydro’s North American operations have improved their manufacturing capabilities.
It has been decided that the remaining anodising and fabrication activities will either be transferred to other plants or divested by mid 2003 at the latest. Other business serviced by the Moultrie plant will be transferred to other Hydro facilities in the North America region, with a minimum of disruptions to customers.
Reports indicate that there has been a sharp decline in the demand for aluminium extrusions. Shipments of aluminium extrusions have decreased by 20% from 2000 to 2001 due to a slowing the in the US economy. Demand for construction materials has also declined, which has had an adverse affect on the Moultrie plant.
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