Alcoa Seeks to Sell Hungarian Plants

March 7, 2009
Wire harness, automotive products operations on the block

Alcoa’s global downsizing program includes plans to sell two plants in Hungary, according to wire reports. The facilities are a wiring harness plant in Mor, and Alcoa-Kofem Kft. in Szekesfehervar, where automotive products are produced. The total number of workers affected is uncertain.

The latter operation produces forged aluminum wheels, among other automotive products.

Alcoa has been operating in Hungary since 1993, where it manufactures a wide range of aluminum and other products, for automotive, aerospace, IGT, and other industrial segments. It’s reported to be the 12th largest employer in Hungary.

Earlier this year Alcoa announced a corporate strategy to reduce its total global workforce by 13%, including cutting primary aluminum output by 18%, and selling off a series of product lines, in order to “conserve cash, reduce costs and strengthen the company’s competitiveness during the current economic downturn.” Alcoa plans to discontinue its Cast Automotive Wheels business, but it intends to continue producing forged wheels.