Orkla ASA and Norsk Hydro ASA Sign Agreement for Combining Aluminium Extrusion Operations

Combining the aluminium extrusion operations of Sapa and Hydro has created the global leader in aluminium solutions with 23,000 employees and operations in more than 40 countries. The new company Sapa AS, a 50/50 joint venture owned by Orkla and Hydro, was established September 1.

Svein-Richard Brandtzaeg President & CEO Hydro, Svein Tore Holsether President & CEO Sapa AS, and Åge Korsvold President & CEO Orkla during the signing ceremony on Sunday 1st September, when the transaction was finally closed

"I am very pleased to see Sapa AS emerge as the global leader in aluminium solutions. Sapa has the strength and ability to serve both local and global customers. We will continue developing innovative aluminium solutions and shaping a lighter future together with our customers across the globe," says Svein Tore Holsether, CEO of Sapa.

Orkla ASA and Norsk Hydro ASA agreed in October 2012 to combine their respective profiles, building systems and tubing operations in a 50/50-owned joint venture. With the last outstanding approval given from the Chinese competition authority on August 19, the transaction was closed September 1.

Sapa AS is headquartered in Oslo, Norway, combining local expertise with a global network and R&D capabilities, serving its customers from over 100 sites in more than 40 countries. The new joint venture has leading positions in Europe and North America, and strong footholds in emerging markets such as Brazil, China, India and Vietnam.

"Sapa is well positioned to capture future growth opportunities, driven by the increasing demand for sustainable aluminium solutions in lighter vehicles, energy-efficient buildings and other industrial applications," says Holsether.

The combined operations in Sapa AS, consisting of Profiles, Building Systems and Extruded and Welded tubes of former Sapa, and all of Hydro's business area Extruded Products, had in 2012 revenues of NOK 43 billion and production volume of 1.4 million metric tonnes. The company has 23,000 employees and will be one of Norway's largest industrial Groups. Sapa expects annual cost synergies of around NOK 1 billion to come from improving operations and optimizing the footprint.

Media briefing: September 2nd at 11.30

Place: Biskop Gunnerus gate 14 (Posthuset), 11th floor

Source: http://www.sapagroup.com

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