LONDON Norsk Hydro ASA has agreed to buy Rio Tinto Alcan Inc.s 50-percent stake in the Vigeland Metal Refinery AS in Norway.
Oslo, Norway-based Hydro already owns 50 percent of the facility, which produces high-purity aluminum for semiconductors and electronic applications, and is the sole offtake partner for its production. Hydro has also agreed to acquire Montreal-based Rio Tinto Alcan Inc.s 100-percent ownership stake in the AS Vigelands Brug hydropower station, which supplies electricity to the metal refinery.
The Vigeland transaction represents a close match with Hydros overall business model as an integrated aluminum company, comprising an on-site hydropower asset supplying the refinery with electricity, Arvid Moss, executive vice president and head of energy and corporate business development, said.
Hydro has been boosting its activity in downstream operations over the last year.
This agreement follows Hydros tie-up with Oslo-based Orkla ASA, owner of the Sapa Group, in which the two companies agreed to combine their aluminum profiles, building systems and tubing businesses in a 50/50 joint venture (amm.com, May 13
In March, Hydro opened a new test center for warm-climate aluminum building solutions in Qatar, and earlier this month, it signed a cooperation agreement with Tokyo-based Kobe Steel Ltd.s aluminum arm on aluminum sheet technology for cars (amm.com, June 11
The Vigeland refinery is the longest-running aluminum plant still in operation in Norway and produces 8,500 tonnes of high-purity aluminum per year.A version of this article was first published by AMM sister publication Metal Bulletin.