Norway's Hydro plans to close five extrusion plants in Europe

COPENHAGEN (Reuters) -Norwegian aluminium producer Hydro said on Wednesday it would close five extrusion plants in Europe by 2026.

"The reality in the European market requires decisive action. Decisions like this never come easy, but they are necessary," CEO Eivind Kallevik said in a statement. 

The closure would affect around 730 employees.

Hydro said it expects annual run rate savings exceeding 500 million Norwegian crowns ($48.93 million). Restructuring costs are estimated at 1.9 billion crowns, with impairment charges and provisions expected to impact the company in the fourth quarter of this year, it added. 

Hydro will retain 28 extrusion plants and five recycling facilities under its European extrusions business unit, employing about 7,000 people.

($1 = 10.2196 Norwegian crowns)

(Reporting by Stine Jacobsen, editing by Terje Solsvik and Louise Rasmussen)