Norsk Hydro: Hydro to close extrusion plant in Lucé, France

Core Viewpoint - Hydro is proposing to close the Lucé plant in France as part of a strategy to optimize its extrusion operations in Europe and enhance competitiveness [1][3]. Group 1: Closure Details - The proposed closure will affect approximately 80 employees, with a formal consultation process to begin soon [1]. - The Lucé plant has been operational since 1986 and houses two extrusion presses, but it is co-located with an aluminium recycling plant that will remain unaffected [4]. - If confirmed, the closure is scheduled for 2026, following the earlier announcement of closing five other extrusion plants in Europe [3]. Group 2: Market Context and Commitment - The European market is described as challenging, prompting the need for further action, although the company remains committed to maintaining a strong presence in France [2]. - Hydro emphasizes that customer service levels will not be impacted by the proposed changes, and affected customers will receive products from other Hydro locations [4]. Group 3: Financial Implications - The total estimated restructuring cost is NOK 260 million, which includes NOK 80 million in impairment charges and NOK 175 million in provisions expected to be recorded in Q1 2026 [5]. - An estimated impact of around NOK 5 million on Adjusted EBITDA is anticipated for Q1 2026 due to these restructuring costs [5].