Norsk Hydro is selling its Precision Tubing plant in Remscheid, Germany to Rupert Fertinger, the aluminum maker announced on Wednesday.
The extruded aluminum plant produces welded tube and pipe products that serve the automotive industry in building radiator housings. In the second half of this year, the division made a loss of $164mn due to the impact of the COVID-19 pandemic, which caused lower production rates across the automotive industry. According to media reports, the plant was slated to shut down in May due to this effect.
Erik Fossum, president of Hydro Precision Tubing, said that the company is glad that the acquisition will allow the plant to continue operations and retain its customer base. The transaction will be completed by October 1, and the 129 employees will be transferred as well, Hydro said in a statement, though it did not disclose the transaction amount.