OSLO (dpa-AFX) - Norsk Hydro ASA (NHYDY, NHYKF, NOH1.F, NHY.OL), a Norwegian aluminium and renewable energy company, said that it has planned to shut five plants to optimize the extrusion footprint in Europe and boost competitiveness.
The total restructuring cost is estimated at NOK 1.9 billion, with NOK 460 million of impairment charges and NOK 1.25 billion of provisions expected for the fourth quarter of 2025.
The run rate improvements from the restructuring are expected to be over NOK 0.5 billion a year.
The decision will affect Hydro Extrusions' 2 production plants in the UK, followed by Germany, Italy, and the Netherlands. If confirmed, the sites will be closed during 2026.
The proposed closure will impact 730 employees across the five plants. After the proposed changes, Hydro will have 28 extrusion plants and five recycling facilities in the Extrusion Europe business unit.
In addition, the company noted that its workforce adjustment is ahead of target in 2025, that is expected to result in annual net run-rate savings of around NOK 1 billion from 2026.
Hydro's improvement program is on track to deliver NOK 6.5 billion by 2030.
The capital allocation targets for 2025 and 2026 are reduced to NOK 13.5 billion from NOK 15 billion.
Further, Hydro added that it continues to make solid progress toward its NOK 2 billion greener earnings uplift potential by 2030.
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