Norsk Hydro: Hydro to close five European extrusion plants

Rhea-AI Summary

Hydro (OTC:NHYDY) proposes to close five European extrusion plants — Cheltenham and Bedwas (UK), Lüdenscheid (Germany), Feltre (Italy) and Drunen (Netherlands) — with a formal consultation starting immediately and potential closures during 2026.

The proposal affects 730 employees, involves eight extrusion presses and three recycling units, and aims to strengthen long‑term competitiveness by optimizing the European extrusion footprint.

Financial impacts for Q4 2025 include an estimated NOK 1.9 billion total restructuring cost (including NOK 460 million impairment and NOK 1.25 billion provisions), an NOK 50–100 million hit to Adjusted EBITDA, and expected run‑rate improvements in excess of NOK 0.5 billion per year.

Positive

• Run‑rate savings expected to exceed NOK 0.5 billion per year
• Consolidated footprint will retain 28 extrusion plants and 5 recycling facilities in Europe
• Continued market presence with commitments to serve customers from other Hydro locations

Negative

• Total restructuring cost estimated at NOK 1.9 billion
• Impairment charges of NOK 460 million and provisions of NOK 1.25 billion in Q4 2025
• Adjusted EBITDA impact of around NOK 50–100 million in Q4 2025
• Jobs affected: 730 employees at five plants

Hydro has decided to consolidate the Extrusions operations in Europe with a proposal to close five of its European plants. This move is made to optimize the extrusion footprint in Europe and strengthen competitiveness.

The decision will affect Hydro Extrusions’ production plants in Cheltenham and Bedwas in the UK, Lüdenscheid in Germany, Feltre in Italy, and Drunen in the Netherlands. A formal consultation process with employee representatives at the affected plants will begin immediately. If confirmed, the sites will be closed during 2026.

The decision to optimize the European extrusion footprint is based on a detailed review and analysis of the performance and market situation, with the aim to strengthen the long-term competitiveness of Hydro Extrusions’ business in Europe.

“The reality in the European market requires decisive action. Decisions like this never come easy, but they are necessary. We will carry out the process with full focus on safety, and with a commitment to treat everyone affected fairly and with respect,” says President and CEO, Eivind Kallevik.

The proposed closure affects 730 employees across the five plants. The plants have a combined total of eight extrusion presses, various added value processes and three recycling units.

“We will continue to have a strong presence in the European markets, and we are determined to serve our customers with dedication and a high service level,” says Kallevik.

Hydro remains fully committed to the European extrusion markets, and the proposed changes will not affect the commitments and service levels to customers. If the decision to close is confirmed, customers that are currently being served by the affected locations will receive their products from other Hydro locations.

Hydro Pole Products, currently consolidated with the Drunen plant, will not be affected by the restructuring.

After the proposed changes, Hydro will have 28 extrusion plants and five recycling facilities in the Extrusion Europe business unit and a total of 7,000 employees.

The total restructuring cost is estimated to NOK 1.9 billion, with NOK 460 million of impairment charges and NOK 1.25 billion of provisions expected to be taken in Q4 2025. Costs of around NOK 50-100 million will impact the Adjusted EBITDA in Q4 2025. The expected run rate improvements from the restructuring are in excess of NOK 0.5 billion per year. 

Investor contact:
Elitsa Blessi
+47 91775472
Elitsa.Blessi@hydro.com

Media contact:
Anders Vindegg
+47 93864271
Anders.Vindegg@hydro.com

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

FAQ

Which five Hydro extrusion plants are proposed for closure and when will they close (NHYDY)?

Hydro proposes closing Cheltenham and Bedwas (UK), Lüdenscheid (Germany), Feltre (Italy) and Drunen (Netherlands); if confirmed, closures will occur during 2026.

How many employees will be affected by Hydro's proposed closures (NHYDY)?

The proposed closures affect 730 employees across the five plants.

What is the estimated cost and accounting impact of Hydro's restructuring (NHYDY) in Q4 2025?

Total restructuring cost is estimated at NOK 1.9 billion, including NOK 460 million impairment and NOK 1.25 billion provisions, with a NOK 50–100 million Adjusted EBITDA impact in Q4 2025.

What annual savings does Hydro expect from the European extrusion consolidation (NHYDY)?

Hydro expects run‑rate improvements in excess of NOK 0.5 billion per year from the restructuring.

Will Hydro stop serving customers in affected regions after the plant closures (NHYDY)?

Hydro says customer commitments and service levels will be maintained, with affected customers served from other Hydro locations.

Does the restructuring affect Hydro Pole Products or total workforce (NHYDY)?

Hydro Pole Products consolidated with the Drunen plant will not be affected; after changes Hydro expects a total of 7,000 employees in the Extrusion Europe unit.