Orkla will explore the opportunities for a divestment of the rolled products operations of Sapa.
Orkla ASA and Norsk Hydro ASA today announced the forming of a joint venture (J/V), combining their Profiles and Building Systems operations. The J/V also includes the extruded and welded products operations, which today is a part of Sapa Heat Transfer, but it excludes the rolled products operations. As a consequence, Orkla will explore the opportunities for a divestment of the rolled products operations.
The planned divestment includes the main part of the business area Sapa Heat Transfer (turnover full year 2011 of approx. 3.9 billion NOK), including the two rolling mills in Shanghai, China and in Finspång, Sweden. Orkla has appointed a financial adviser to support the process.
Sapa Heat Transfer is the global market leader in its niche and serves customers across the world, mainly in the automotive industry. The company has a number one position in many of the fast-growing Asian markets, and a strong, competitive position in Europe. The rolling operation has around 900 employees, mainly based in China and Sweden, and with sales representatives in the US, India, South Korea and Japan.
"In parallel with the establishment of the joint venture with Norsk Hydro, Orkla has initiated a process to ensure the continued long-term competitiveness and success of Sapa Heat Transfer under new ownership. This is in line with Orkla's strategy. We are confident that we will find a new owner that will confirm its position as the globally leading supplier of aluminium solutions for the heat exchanger industry," says Åge Korsvold, Orkla's President and CEO.
"We have a strong and competent organisation in place at Sapa Heat Transfer. Our operational expertise and R&D focus ensure that we will continue to offer high-quality solutions to our customers across the world," says Svein Tore Holsether, Sapa's President and CEO.