NKT and Hydro Sign Strategic Deal for Low-Carbon Aluminum Wire to Accelerate Green Transformation

The Rio Tinto-owned Tiwai Point aluminum smelter in New Zealand faces strike risk, with 186 workers, about 28% of the workforce, planning stoppages on May 4, 6, 8 and 10. The action follows around 2.5 years of unresolved labor negotiations over pay, benefits and working conditions. The company has proposed mediation on May 20 to reach an agreement. While management said current terms remain competitive and negotiations are ongoing, the planned industrial action could disrupt production schedules and operational stability at the smelter. If talks fail to make progress, the risk of prolonged disruptions may increase, creating uncertainty for near-term aluminum supply and adding pressure to an already tight global market environment.

Nexans has acquired 100% of US-based aluminium and copper wire producer Republic Wire, with an enterprise value of about USD 734 million and an earn-out of up to USD 46 million. Republic Wire generates around USD 5.6 billion in revenue and operates a highly automated manufacturing and distribution platform, with capacity expected to increase by about 30% after expansion. Nexans said the deal aims to expand its presence in the US low- and medium-voltage cable market and strengthen its distribution network. The transaction is expected to close in Q3 2026 and generate about USD 250 million in synergies over three years, supporting long-term growth in North America.

According to Hydro's official website, Hydro's adjusted EBITDA for the first quarter of 2026 was NOK 8.668 billion, lower than NOK 9.516 billion in the same period last year. This was mainly due to lower raw material costs, higher metal prices, and increased sales of alumina and metals, but this was partially offset by lower alumina prices, a stronger NOK, and lower electricity generation. Hydro's profitability was strong this quarter, with adjusted earnings per share increasing to NOK 2.07 in the first quarter of 2026, compared to NOK 1.63 in the first quarter of 2025. The upstream business segment continued to operate strongly in the first quarter.