Aluwheel's acquisition of Hydro Aluminium Fundo completed

Norsk Hydro ASA of Norway and Aluminium Wheel Company WLL (Aluwheel) of Bahrain today announced that Midal Group / Aluwheel has acquired 80% of Hydro’s automotive aluminium wheel producer, Hydro Aluminium Fundo a.s in Høyanger. Hydro will maintain a 20% share until 2001, when it will be transferred to Aluwheel.

Aluwheel casts wheels for the automotive industry in its Bahrain plant and is controlled by Midal Cables through Al Zayani Investments and Saudi Cables. The group is represented with industrial activities in Norway through Investment Corp. Aluwheel is located close to the Alba smelter in Bahrain, allowing transportation of molten aluminium to the Aluwheel plant.

Hydro Aluminium Fundo has been part of the Hydro Aluminium Extrusion Division of Norsk Hydro ASA, Norway's largest public company and one of the world's leading light metal companies. Fundo was established in 1972 and today has 330 employees and a capacity of more than one million wheels per year. Its main customers are the leading German and Swedish passenger car producers.

Norsk Hydro has actively pursued the divestment of Fundo, since the aluminium wheel production was considered not to be part of Hydro’s core business and the automotive focus shall be intensified on extrusion based products.

Midal Groul / Aluwheel is committed to expanding its business and the Fundo plant with its new home complements Aluwheel's plans on the technology as well as on the market and supply side.