Norsk Hydro: Heroya Industrial Park to be sold
January 30 2015 - 5:06AM
Hydro has decided to sell Herøya Industrial Park in
Porsgrunn, Norway.
The decision is a result of the major changes Hydro has gone
through over the last 10-15 years, going from a conglomerate
operating in several business sectors to a pure aluminium company
with its own significant electric power production.
Fertilizer production, which played such an important role in
Hydro's history, went over to Yara when it was spun off from Hydro
in 2004. The petrochemical business was sold to Ineos in 2008,
while magnesium production was wound down in 2001 in the face of
severe competition from China.
"For many years Hydro has made a major effort to develop the
industrial park and encourage the creation of new businesses in
Grenland. As a result, there are now around 80 companies here at
Herøya with a total of 2500 employees," says executive vice
president Eivind Kallevik in Hydro.
He notes that there are only about 75 Hydro employees left in
Herøya. Most of them work on operating and developing the industry
park itself, and in the research center.
"The decision to sell is therefore a natural consequence of
developments in Hydro and at Herøya Industripark in recent years,"
he says.
Kallevik explains that the sales process will be standard and
open, where potential local, Norwegian and international buyers
will be invited to make offers. The overall goal is to find a
professional owner with the resources and expertise to run and
further develop the industrial park.
It is not known how long the sales process will take, but he
estimates that a new owner will be in place by the end of the
year.
Hydro is planning to sell the assets made up of Herøya
Industripark AS and Herøya Nett AS, including the properties, own
buildings, infrastructure, electricity grid and process water
supplies. After the sale, about 50 employees will be transferred to
the new owner.
Industrial activity began in Herøya early in the summer of 1929
with the establishment of the Eidanger saltpeter factory.
Fertilizer production was based on ammonia from Rjukan. The
facilities were gradually expanded, first through the increased
production of fertilizer and its by-products, and later with the
addition of PVC and magnesium. At the peak in the 1960s, Hydro
employed around 6500 people in Herøya.
Investor contact Contact Pål Kildemo Cellular +47 97096711
E-mail Pål.Kildemo@hydro.com
Press contact Contact Halvor Molland Cellular +47 92979797
E-mail Halvor.Molland@hydro.com
HUG#1890568
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