Hydro has decided to consolidate its aluminium precision tubing operations in North America as result of the extremely challenging situation in the automotive industry, and will consequently close its aluminium tubing plant in Adrian. 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.
The demand for Hydro TMs aluminium systems and components from automotive customers has fallen sharply the past year, in line with the reduction in light vehicle production. The downward trend in the North American market started even earlier, in 2006, then accelerated last year and has shown no signs of rebounding.
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 TMs current business will be transferred to the Hydro-owned aluminium precision tubing facilities in Rockledge, Florida, and in Reynosa, Mexico.
Salvador Biosca, who is responsible for Hydro TMs automotive business, communicated the decision in face-to-face meetings with local management and employees on March 31.
We don TMt 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.