Hydro will close the Kurri Kurri aluminium plant
(Thomson Reuters ONE) -
Norsk Hydro ASA has decided to close its Kurri Kurri aluminium plant in
Australia. The decision follows a consultation process with the local employees.
"After consulting with the workforce and the unions, we have come to the
conclusion to close the remaining two production lines at Kurri Kurri. We will
shortly start shutting down pots, and will do this in a safe and proper manner,"
says Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal
business area.
The decision is a response to the weak macro-economic environment, with low
metal prices, uncertain market outlook and overcapacity in the aluminium
industry, in combination with a strong Australian dollar.
One potline was already curtailed in February. The process to close the
remaining two potlines will start shortly and is expected to take up to three
months. More than 300 people will be made redundant as a consequence of the
decision to close the plant.
Following the decision, Hydro expects to recognize an expense of about NOK 200
million related to redundancies and an impairment charge of about NOK 1.2
billion in the second-quarter results. Both items will be excluded from
underlying EBIT. Cash effect from redundancies will be more than offset by
release of working capital.
Hydro remains confident that customer commitments will be served through its
global metal products supply system.
Kurri Kurri, fully owned by Hydro, has three production lines with a total
annual production capacity of 180,000 metric tons.
Investor contact
Contact Stian Hasle
Cellular +47 97736022
E-mail Stian.Hasle(at)hydro.com
Press contact
Contact Halvor Molland
Cellular +47 92979797
E-mail Halvor.Molland(at)hydro.com
*********
Certain statements included within this announcement contain forward-looking
information, including, without limitation, those relating to (a) forecasts,
projections and estimates, (b) statements of management's plans, objectives and
strategies for Hydro, such as planned expansions, investments or other projects,
(c) targeted production volumes and costs, capacities or rates, start-up costs,
cost reductions and profit objectives, (d) various expectations about future
developments in Hydro's markets, particularly prices, supply and demand and
competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk
management, as well as (i) statements preceded by "expected", "scheduled",
"targeted", "planned", "proposed", "intended" or similar statements.
Although we believe that the expectations reflected in such forward-looking
statements are reasonable, these forward-looking statements are based on a
number of assumptions and forecasts that, by their nature, involve risk and
uncertainty. Various factors could cause our actual results to differ
materially from those projected in a forward-looking statement or affect the
extent to which a particular projection is realized. Factors that could cause
these differences include, but are not limited to: our continued ability to
reposition and restructure our upstream and downstream aluminium business;
changes in availability and cost of energy and raw materials; global supply and
demand for aluminium and aluminium products; world economic growth, including
rates of inflation and industrial production; changes in the relative value of
currencies and the value of commodity contracts; trends in Hydro's key markets
and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been
correct. Hydro disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE
[HUG#1617275]
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Datum: 05.06.2012 - 08:03 Uhr
Sprache: Deutsch
News-ID 152985
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contact information:
Town:
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