Following approval by the European Commission, Norsk Hydro ASA, the Norwegian aluminium and energy group, has today completed the sale of its Castings business to the Mexican automotive supplier Nemak.
Following approval by the European Commission, Norsk Hydro ASA, the Norwegian aluminium and energy group, has today completed the sale of its Castings business to the Mexican automotive supplier Nemak. The transaction represents an enterprise value for Hydro’s castings business of approximately NOK 3.7 billion. The transactions will result in a gain for Hydro of approximately NOK 900 million under US GAAP.
The divestment of the castings business is a major element in the ongoing restructuring of Hydro’s downstream aluminium portfolio. The sales process for the company’s Automotive Structures business is still ongoing.
Nemak, a subsidiary of the Mexican industrial company Alfa S.A.B., is a leading producer of cylinder heads with operations in Europe, North and Central America. The castings business acquired from Hydro includes production facilities in Germany, Austria, Hungary and Sweden, manufacturing aluminium cylinder heads and engine blocks for the automotive industry.
The sale of Hydro’s 49.99 percent of the interests in the Mexican joint-venture company Castech S.A. de CV to Grupo Industrial Saltillo S.A.B de CV has also been completed.
The European operations included in the deal have a total of 2,200 employees, while Castech in Mexico employs 1,000 people.