OSLO, Sept 10 (Reuters) - Norsk Hydro, one of the world’s largest aluminium producers, said on Tuesday it would close some production and lay off employees to increase profitability at its rolled products business segment.
The restructuring, expected to cost around 160 million euros ($177 million), includes closing parts of the foil production at the Grevenbroich plant in Germany, as well as efficiency measures across the organisation, the company said in a statement.
Out of the total cost, 100 million to 120 million euros will be taken as a provision in the third quarter 2019, it added.
“Our cost position in parts of our foil business is too high, mainly due to manning intensive and manual production processes, and we are also facing strong competition in this market segment,” said Einar Glomnes, executive vice president of rolled products. “As a consequence, we are planning to close our foil mainline.”
The company said the total restructuring consists of a planned reduction of personnel costs of up to 60 million euros per year, but it could not provide the number of people to be laid off.
The company said it wanted its rolled products business to focus more on growth markets, such as automotive and can business. ($1 = 0.9053 euros) (Reporting by Nerijus Adomaitis; Editing by Lisa Shumaker)