NEW YORK A
merger to create the worlds largest extrusion company
should by completed Sept. 1, according to Sapa Extrusions North
America marketing director Jeffrey Henderson.
Sapa, the new company,
results from a "merger of equals" and is a 50-50 joint venture
between Norsk Hydro ASA and Orkla ASA, the parent company of
Sapa Group, he said during a presentation at
AMMs Aluminum Summit in New York.
The deal has already
been approved by regulators in the United States, Europe and
elsewhere, Henderson said. The sole holdout is China, which has
said that it is waiting for decisions in the United States and
Europe before making its own decision, he added.
"We dont expect
any issues at all with the Chinese government, so we are in a
position now to see a final hurdle in the coming weeks,"
announced European Commission approval of the joint venture
last month (
amm.com, May 13).
"It has been
Sapas ambition to become the global leader for aluminum
extrusions and create a global platform from which we can serve
global customers," Henderson said. But until the deal closes,
it is still "way too early to know" what business decisions or
deeper organizational charts might look like, he said. "It will
take analysis and time and careful planning after the close to
put the true company together."
The tie-up should give
Sapa operating facilities and a presence in 36 countries, as
well as more than 100 different operating companies. It will be
organized into five business units: Profiles Europe, Profiles
Americas, Profiles Asia, Building Systems and Precision Tubing,
which focuses on the heat-exchanger market.
The Profiles Americas
unit will join North America and South America. Sapa
doesnt currently have a presence in South America,
Henderson said. "We will clearly have a nice foothold in new
markets for Sapa and new markets for the Hydro products group,"
Sapa will move its
headquarters to Oslo, Norway, in the fall after the merger
closes from its current location in Stockholm, Sweden,
expressed optimism about the aluminum extrusion business. "We
are entering an aluminum age where tomorrows products
will become aluminum-oriented as opposed to other materials
that have historically (been) used," he said.