Extrusion JV garners mixed response

Oct 16, 2012 | 04:39 PM | Suzy Waite

Tags  Norsk Hydro, Orkla, Sapa, aluminum, Aluminum Association and Aluminum Extruders Council, Suzy Waite

CHICAGO — The proposed joint venture between Norsk Hydro ASA and Sapa Group has garnered mixed reactions from the sector, with many contending it will be largely positive for the North American extrusion industry but others questioning whether it gives the new downstream powerhouse too much pricing control.

The deal, announced Monday, would see the former competitors combine all of their aluminum profiles, building systems and tubing businesses into a 50-50 joint venture called Sapa (amm.com, Oct. 15).

The impact of the merger is still unclear, but most market participants told AMM they believe it will be a net positive for the North American industry.

"Sapa and Hydro individually do a great job of promoting aluminum, and I see that as a continued effect of this JV," a producer source told AMM on the sidelines of the Aluminum Association and Aluminum Extruders Council joint meeting in Chicago. ....

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