Norsk Hydro (NHYDY) (NHYKF) announced on Wednesday its decision to close two U.S. aluminum extrusion plants next year, a move projected to impact approximately 350 jobs. The Norwegian aluminum and renewable energy company specified the facilities located in City of Industry, California, and Delhi, Louisiana, as the sites slated for shutdown.
The company attributed the closures primarily to persistent low capacity utilization at both locations. Norsk Hydro further noted that these plants would necessitate significant capital expenditure to upgrade and improve their operational efficiency, a factor contributing to the strategic decision against their continued operation. This strategic adjustment aims to streamline the company’s North American production capabilities, focusing on facilities with higher utilization and stronger economic viability.
The impending shutdowns will directly result in the elimination of around 350 positions across the two sites. This action underscores Norsk Hydro’s focus on optimizing its asset base and improving profitability in its extrusion business, responding to prevailing market conditions and internal performance metrics within the competitive aluminum extrusion sector. The company’s statement highlights a clear path towards a more efficient and competitive operational structure for its U.S. aluminum extrusion segment.
