Newspaper Aftenposten reported Monday that the 700 workers at Hydro's plant in Raufoss, south of Gjøvik, must hope that Hydro finds a buyer to take over the business. If not, their plant faces shutdown.
All told, the decision can affect more than 4,000 Hydro employees who are tied to the auto parts business. Hydro's decision to sell is part of its strategy to reduce its engagement in aluminium products.
The energy and aluminium group had announced its strategy shift last December. A company spokesman said Hydro already was talking with potential buyers for some casting units.
The automotive components business consists of two units, Castings and Structures, with more than 3,600 employees in Europe and North America. Hydro said the Castings business remained healthy.
All told, though, the automotive parts business posted operating losses of NOK 136 million (USD 21.4 million) in the third quarter. That accounted for most of the Aluminium Products segment's total losses of NOK 192 million.
Most of the losses are blamed on car manufacturers' tendency to opt for products made by cheaper metals or materials, in their own drive to cut costs.
