Norsk Hydro ASA has announced a proposal to close five extrusion plants in Europe as part of a strategy to streamline operations and increase competitiveness across the continent. The restructuring is expected to affect approximately 730 employees across the sites in Cheltenham and Bedwas in the United Kingdom, Lüdenscheid in Germany, Feltre in Italy, and Drunen in the Netherlands.
Reduction of industrial footprint
The decision follows a strategic review of the operational performance of Hydro Extrusions, a subsidiary specialised in aluminium extruded products. The affected plants operate eight extrusion presses, several value-added processes, and three recycling units. The company stated that consultation processes with employee representatives will begin immediately, with closure targeted for 2026 if confirmed.
Hydro Pole Products, an entity currently integrated with the Drunen site, will not be impacted by the restructuring. The management has stated that existing customers will continue to be supplied from other Hydro facilities in Europe, with no change in service quality.
Financial impact and network reorganisation
Following the restructuring, Hydro will operate 28 extrusion sites and five recycling facilities in Europe, with a total of 7,000 employees in this business division. The total cost of the restructuring is estimated at NOK1.9bn ($177mn), including NOK460mn ($42.8mn) in impairment charges and NOK1.25bn ($116.4mn) in provisions, which will be recorded in Q4 2025.
In addition to these charges, an impact of NOK50mn to NOK100mn ($4.7mn to $9.3mn) is expected on adjusted EBITDA in the fourth quarter. However, the company expects annual performance improvements exceeding NOK500mn ($46.6mn) in the long term.
Continued presence in the European market
Despite the closures, Norsk Hydro has reaffirmed its commitment to maintaining a strong industrial presence in Europe. President and Chief Executive Officer Eivind Kallevik stated that the decision, though difficult, was driven by the realities of the European market.
“We will continue to serve our customers with diligence and efficiency, maintaining our quality standards,” he said.
