Hydro to build plant in Mexico

To better serve the growing automotive markets, Norsk Hydro ASA has decided to construct a new aluminium precision tubing plant in Mexico.

To better serve the growing automotive markets, Norsk Hydro ASA has decided to construct a new aluminium precision tubing plant in Mexico.The new capacity will secure Hydro’s position as the global market leader in aluminium precision tubing for the automotive industry.

The Mexican market for Automotive Tubular Profiles and Precision Drawn Tubes, used in automotive heat transfer applications is experiencing strong growth.

Hydro will build its new plant in Reynosa in North Mexico, with most top customers located in the same region. This will allow lower transportation costs, reductions in lead-time and inventory as well as improved service.

Total capital expenditure is expected to be approximately USD 30 million (NOK 220 million). Construction works will start in August this year, and the plant is expected to start production late fall 2005.

Hydro will establish Reynosa as a state of the art manufacturing facility based on technology from its plants in Tønder, Denmark, and Rockledge, USA. The Reynosa plant will create about 100 new jobs.

The Reynosa plant is the 2nd expansion of the Hydro Automotive Precision Tubing activities in less than one year, as the new Greenfield operation in Suzhou, China was approved last November.

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