Hydro to close precision tubing plant in Michigan

March 31, 2009

Norway-based Hydro, a supplier of aluminum and aluminum products, has announced that it is consolidating its aluminum precision tubing operation in North America and closing it plant in Adrian, Mich. The company cited falling demand from automotive customers as a reason for the consolidation.

The transfer of products and closure of the plant will be completed by the end of this year, ending 70 years of manufacturing operations at the Adrian site.

As part of the closure process, which will affect approximately 120 employees, Hydro will move some of the manufacturing equipment from Adrian to other plants in its global network. The plant's current business will be transferred to the Hydro-owned aluminium precision tubing facilities in Rockledge, Fla., and in Reynosa, Mexico.

Salvador Biosca, who is responsible for Hydro's automotive business, communicated the decision in face-to-face meetings with local management and employees on March 31.

"We don't see any short-term recovery in the market, so we have to adapt our business by consolidating operations in North America," he says. "We will wind down operations in Adrian gradually, and work with the union representatives and employees there to help find new opportunities.

"Our customer relationships will not be affected by the closure. We have available capacity to ensure the transition of products in a timely way, and customers will be involved and informed at every step in the process."



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