Hydro Confirm Closure or Norweigan Magnesium Casthouse

Hydro's Corporate Assembly on Thursday resolved to close the Porsgrunn, Norway magnesium casthouse.

The Corporate Assembly has adopted the Board of Directors’ recommendation to close the plant.

The decision to close has been taken due to fundamental changes in the global market for magnesium alloys, over which Chinese suppliers continue to gain more control. The magnesium casthouse in Porsgrunn has been in serious difficulty for a lengthy period, with market conditions in the first months of the current year further intensifying the problems.

The casthouse will be closed during the second quarter. Its production equipment will not be removed, however, but will be mothballed for the time being.

As previously announced, the approximately 60 employees will be transferred to Herøya Industrial Park, the organization also responsible for implementing the restructuring process.