Norsk Hydro has offered $345 million – just over NOK 2.7 billion – for the Icelandic aluminum plant, ISAL.
“The bid shows that we have a strong belief in aluminum, which is a metal with the largest demand growth globally.
We believe it is crucial that we are present throughout the value chain to create values based on this growth and promote sustainable practices in our global business,” said Hydro’s CEO, Svein Richard Brandtzæg, in a stock market announcement Monday morning.
Hydro plans to acquire Rio Tinto’s stake in ISAL. The offer also includes the Dutch anode plant, Aluchemie, and the Swedish aluminum fluoride factory, Alufluor.
If the purchase is approved, a transaction is expected to be completed in the second quarter of this year.
ISAL currently produces 210,000 tonnes of liquid metal based on renewable energy. They have a newly built foundry.
“With ISAL’s 210,000-tonne aluminum based on renewable energy, Hydro will increase its total capacity for primary aluminum production to 2.4 million tonnes in 2018, and the share produced on renewable energy to over 70 percent,” Hydro states.
© NTB Scanpix / #Norway Today