Hydro’s automotive structures business, part of the Extruded Products business area, is a leading supplier of advanced crash management systems, roll-over bar protection systems and other structural components and assemblies, serving the majority of the global carmakers. The business has a significant part of its production at Raufoss in Norway, with other plants in China, Czech, Denmark, France, Germany, Sweden and the United States. Revenues amounted to NOK 2.2 billion (US$389 million) in 2008 and the business had about 1,200 employees at the end of third quarter 2009.

The agreement represents a long-term industrial solution for Hydro’s automotive structures activities, and is in line with Hydro’s strategy to focus its extruded activities on profiles solutions and building systems.

The transaction is expected to be cash neutral for Hydro, and an estimated after tax loss of NOK 250 million (US$44 million) will be recognized in Hydro’s fourth quarter 2009 results. Hydro expects the transaction to close by the end of fourth quarter 2009 subject to clearance by relevant competition authorities and other anti-trust bodies.

Hydro, an integrated aluminium and energy company, will continue to be a major supplier of aluminium, as well as semi-fabricated rolled and extruded aluminium profiles, to the automotive industry after the divestment.