Norsk Hydro ASA said Monday that it plans to divest its Automotive Components operations as part of a reorganization of its metal production operations.
Automotive Components includes the Casting and Structures unit and has more than 3,600 employees in Europe and North America. Product areas include cast aluminum engine blocks and cylinder heads, and extruded aluminum crash management components such as bumper beams.
Hydro said it will continue to supply aluminum tubing for heat transfer systems, as well as extruded and rolled aluminum products for other automotive applications.
“As car manufacturers are fighting decreasing margins, opting for products made by cheaper metals or materials, Hydro has not been able to ensure satisfactory profitability within Automotive Structures. The Castings business unit is healthy but should be further developed by an owner that is better positioned to succeed in the competitive auto industry,” said Eivind Reiten, Hydro’s President and CEO.