Pietermaritzburg, KwaZulu-Natal-based aluminium products manufacturer Hulamin Limited has announced the disposal of its Hulamin Extrusions business as part of its strategy to streamline operations and focus on its core rolled products segment.

The company confirmed in a statement that its wholly owned subsidiary, Hulamin Operations, had entered into “a series of inter-conditional agreements” with Norsaf ERS for the sale of its interest in Hulamin Extrusions. The deal also includes transitional arrangements that will allow the business to continue operating from Hulamin’s premises for a limited period.

Hulamin Extrusions was identified as a non-core asset last year (see https://metalworkingnews.info/hulamin-decides-to-exit-extrusions-business/) and earmarked for disposal to enable the redirection of resources and management attention to the Group’s core rolled products activities. The transaction is aimed at strengthening the group’s financial position and operational focus.

“The transaction is intended to support improved cost efficiency, liquidity, capital allocation discipline and strategic execution,” the company said.

While the business was sold for R10 million, additional financial arrangements linked to stock and intercompany balances could see the total value associated with the deal reach up to R100 million.

Hulamin Extrusions will assign to Norsaf ERS its rights to amounts owed by trade debtors and will transfer ownership of stock on hand to it at book value, which will be held on consignment and drawn down, also at its book value, according to the consignment stock agreement between the parties. At 31 March 2026, Hulamin Extrusions’ unaudited management accounts reflected a stock balance of about R106 million. It expects this amount to reduce considerably by the closing date. Accordingly, the amount to be paid in respect of the consignment stock and any loan account waiver in favour of Hulamin will not, in aggregate, exceed R100 million.

Hulamin Extrusions, which manufactures aluminium products for the automotive, transport and construction sectors, will continue to operate from its current sites under a lease and shared services agreement.

While the business recorded a net asset value of approximately R44.9 million as at December 2025, it posted a loss after tax of R35.7 million for the year. Proceeds from the transaction will be directed towards settling creditors, reducing debt and supporting working capital.

The deal remains subject to approval by competition authorities by 31 July 2026.

Hulamin Extrusions was founded 40 years ago by Alcan. Today Hulett Extrusions have production plants in Olifantsfontein, Gauteng and Pietermaritzburg, KwaZulu-Natal. Hydro Aluminium Extrusions – one of the world’s leading extruders became a shareholder in the extrusion division during the period 1997 to 2008. In June 2007 Hulamin listed on the Johannesburg Stock Exchange and subsequently Hulett Hydro Extrusions changed its name to Hulamin Extrusions. In 2008 Hulamin acquired the Hydro Aluminium shareholding to become the sole shareholder of Hulamin.