Archiv – Norsk Hydro of Norway has entered into an agreement to sell two magnesium remelting operations to Varomet Holdings Ltd, a subsidiary of Australian mining company Straits Resources.Norway | Norsk Hydro of Norway has entered into an agreement to sell two magnesium remelting operations to Varomet Holdings Ltd, a subsidiary of Australian mining company Straits Resources. The facilities are located at Bottrop in Germany and Xi’an in China. The deal remains subject to approval by the German and Chinese authorities.
According to Norsk Hydro, the divestment reflects its decision to withdraw from the magnesium business. The company’€™s primary magnesium plant in Quebec, Canada, was closed in March.
The Varomet trading and investment holding company is wholly owned by Straits Resources, a listed Australian mining company focusing on copper, gold and coal bulk commodities. Varomet is a supplier, marketer and off-taker for a wide variety of commodities, including non-ferrous and speciality metals. The company boasts representative offices in 15 locations.
If the deal is approved, the operations acquired from Hydro will become part of a larger magnesium operation that includes GfE-MIR, a German subsidiary actively involved in the global distribution and marketing of magnesium alloys. Varomet also has a strategic alliance with Thermo Magnesium SA which operates a magnesium recycling plant in Marignac, France. The company has ambitious plans for developing their magnesium operations as a strategic partner for the automotive industry.
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