OSLO (dpa-AFX) - Norsk Hydro said that it has decided to initiate a comprehensive restructuring program in its rolling business that will lead to a redundancy of up to 735 full time equivalents or FTEs. The restructuring includes the planned closure of parts of the foil production at Grevenbroich as well as efficiency measures across the organisation.
The restructuring includes the FTE reduction of 226 employees through the planned closure of the foil mainline by end of 2020 and 117 FTEs through the exit of the conversion business by end of 2019. Efficiency measures throughout all Rolled Products sites will close the gap up to 735 FTEs and is planned to be delivered by 2024, with the majority by end of 2022.
The company noted that the total restructuring consists of a planned reduction of personnel cost of up to 60 million euros per year.
The total restructuring cost is around 160 million euros, of which 100 million euros to 120 million euros will be taken as a provision in third-quarter of 2019.
In September 2018, Hydro announced the exit of the foil conversion business by December 31, 2019. These closures combined represents about 30% of the overall foil production of Rolled Products.
Copyright RTT News/dpa-AFX