Sapa as global leader in aluminum solutions

Orkla ASA and Norsk Hydro ASA agreed in October 2012 to combine their respective profiles, building systems and tubing operations in a 50/50-owned joint venture. With the last outstanding approval given from the Chinese competition authority on August 19, 2013 the transaction was closed September 1, 2013. The new joint venture has leading positions in Europe and North America, and strong footholds in emerging markets such as Brazil, China, India and Vietnam.

The combined operations in Sapa AS, consisting of Profiles, building systems and extruded and welded tubes of former Sapa, and all of Hydro’s business area Extruded Products, had in 2012 revenues of NOK 43 billion (roughly US$6.8 billion) and production volume of 1.4 million metric tonnes. The company has 23,000 employees and will be one of Norway’s largest industrial Groups. Sapa expects annual cost synergies of around NOK 1 billion (roughly 160 million US) to come from improving operations and optimising the footprint.