Hydro has entered into an agreement to sell its German based alumina business.
Hydro has entered into an agreement to sell its German based alumina business. This consists of a 50 per cent share in Aluminium Oxid Stade GmbH (AOS), the related chemical grade alumina business and the dedicated bauxite supply source represented by Hydro's 10 per cent share in Halco (Mining) Inc.
The Dadco Group, which owns the remaining 50 per cent of AOS, has purchased these operations for a consideration of approximately NOK 750 million. In addition, Dadco will assume all financial, commercial and all other obligations related to the business. The transaction will not result in any significant gain or loss for Hydro.
Dadco is a privately owned investment, manufacturing and trading group; its founding company was established in 1915.
AOS is an alumina refinery located in Stade, near Hamburg in Northern Germany with a total capacity of 850,000 tonnes of alumina. About half of Hydro's share of alumina is chemical grade alumina used in a variety of applications in the chemical and other industries, which are non-core to Hydro's aluminium activities. Halco (Mining) Inc. owns 51 per cent of CBG, one of the largest bauxite mines in the world located in Guinea. Other shareholders in Halco are Alcoa and Alcan.
AOS will continue to produce alumina to supply Hydro's wholly owned primary aluminium unit in Stade and Hamburger Aluminium-Werk, in which Hydro has a 33 per cent shareholding, through a long term supply agreement with Dadco, thereby securing a long-term industrial solution for all parties.