Jun 2 2006
Hydroannounced today plans to divest its extrusion plant in Ellenville, N.Y., which produces drawn aluminum tubing used in the construction, consumer durables and other industries. Hydro has 360 employees in Ellenville, including those at the adjacent casthouse.
Despite recent productivity and financial gains, the Ellenville extrusion operation is not defined as core to the future of Hydro's North American extruded products business.
"We have evaluated our business portfolio, consistent with the revised strategy for Hydro's downstream aluminium activities, and determined that it is vital to focus our resources on other facilities," says Martin Carter, who is head of Hydro's Extrusion North America unit.
In addition to the extrusion and drawn tubing operations, Hydro operates a casthouse on the Ellenville site that produces extrusion ingot from recycled aluminum, serving both the adjacent extrusion plant and outside customers. Hydro will consider divesting the casthouse as part of a transaction involving the extrusion plant.
Plant employees and customers have been informed about the decision to divest the Ellenville extrusion plant and the process to find a buyer has begun.
"The people here have done an excellent job in improving productivity and reducing costs," says Fiona McDonald, general manager of Hydro's extrusion operations in Ellenville.
"While we are disappointed that Hydro has determined to focus its resources elsewhere, I am confident that we will find a buyer who can benefit from the skills and capabilities that we have here in Ellenville."
The Ellenville facility was established by Channelmaster in the 1950s to produce television antennae and subsequently acquired by the Germany-based VAW in 1965. Hydro acquired the Ellenville operations as part of its acquisition of VAW of America in 2002.