PMB-based aluminium producer, Hulamin, has agreed to sell its extrusions business to Norsaf ERS in a R10 million cash deal, as the aluminium group sharpens its focus on core operations.

The transaction, concluded through Hulamin operations, forms part of a broader strategy to exit non-core assets and redirect capital and management attention to its rolled products division, according to a company SENS announcement.

Hulamin extrusions, which manufactures aluminium products for the automotive, transport and engineering sectors, was identified as non-core following a group-wide strategic review.

As part of the deal structure, Hulamin will assume responsibility for the unit’s trade creditors, while trade debtors, cash and stock will be transferred to the seller ahead of the sale. Stock will be managed under a consignment arrangement, with total related proceeds capped at R100 million.

The R10 million purchase price will be paid in cash on closing, backed by a bank guarantee from the purchaser.

Despite the change in ownership, Hulamin extrusions will continue operating from its current premises for at least 12 months under a lease and shared services agreement, with an option to extend for a further year.

Financially, the division has been under pressure, reporting a net asset value of R44.9 million and a net loss of R35.7 million for the year ended December 2025.

Hulamin said proceeds from the disposal, together with collections from debtors and other transaction flows, will be used to settle creditors, reduce group debt and support working capital.

The deal remains subject to approval by competition authorities, with a target date of 31 July 2026. It does not require shareholder approval.