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Investing.com -- Norsk Hydro announced a major consolidation of its European Extrusions business, proposing to close five plants across the UK, Germany, Italy and the Netherlands as part of a restructuring plan.
The closures, expected to take place in 2026, will affect approximately 730 employees and remove eight extrusion presses and three recycling units from the company’s network. The announcement follows a review of market conditions and underperforming assets.
Norsk Hydro stated that these measures will not impact production volumes, as output will be redistributed to its remaining 28 extrusion plants and five recycling facilities throughout Europe.
The restructuring will result in charges totaling NOK 1.9 billion in the fourth quarter of 2025. These charges include NOK 460 million in impairments and NOK 1.25 billion in provisions, with an expected NOK 50-100 million impact on adjusted EBITDA for the quarter.
Morgan Stanley commented on the announcement, describing it as "a meaningful step toward improving segment profitability and capital discipline."
Shares in Norsk Hydro fell 1.3% on Wednesday.
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