Norsk Hydro: Hydro to close five European extrusion plants

Hydro has decided to consolidate the Extrusions operations in Europe with a proposal to close five of its European plants. This move is made to optimize the extrusion footprint in Europe and strengthen competitiveness.

The decision will affect Hydro Extrusions' production plants in Cheltenham and Bedwas in the UK, Lüdenscheid in Germany, Feltre in Italy, and Drunen in the Netherlands. A formal consultation process with employee representatives at the affected plants will begin immediately. If confirmed, the sites will be closed during 2026.

The decision to optimize the European extrusion footprint is based on a detailed review and analysis of the performance and market situation, with the aim to strengthen the long-term competitiveness of Hydro Extrusions' business in Europe.

"The reality in the European market requires decisive action. Decisions like this never come easy, but they are necessary. We will carry out the process with full focus on safety, and with a commitment to treat everyone affected fairly and with respect," says President and CEO, Eivind Kallevik.

The proposed closure affects 730 employees across the five plants. The plants have a combined total of eight extrusion presses, various added value processes and three recycling units.

"We will continue to have a strong presence in the European markets, and we are determined to serve our customers with dedication and a high service level," says Kallevik.

Hydro remains fully committed to the European extrusion markets, and the proposed changes will not affect the commitments and service levels to customers. If the decision to close is confirmed, customers that are currently being served by the affected locations will receive their products from other Hydro locations.

Hydro Pole Products, currently consolidated with the Drunen plant, will not be affected by the restructuring.

After the proposed changes, Hydro will have 28 extrusion plants and five recycling facilities in the Extrusion Europe business unit and a total of 7,000 employees.

The total restructuring cost is estimated to NOK 1.9 billion, with NOK 460 million of impairment charges and NOK 1.25 billion of provisions expected to be taken in Q4 2025. Costs of around NOK 50-100 million will impact the Adjusted EBITDA in Q4 2025. The expected run rate improvements from the restructuring are in excess of NOK 0.5 billion per year.

Investor contact: Elitsa Blessi +47 91775472 Elitsa.Blessi@hydro.com

Media contact: Anders Vindegg +47 93864271 Anders.Vindegg@hydro.com

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act