Hydro changes raw material sourcing for German rolling mills
(Thomson Reuters ONE) -
Norwegian aluminium company Norsk Hydro ASA has decided to increase in-house
primary metal sourcing, replacing less cost-efficient remelting of cold metal as
a source for its Neuss-Grevenbroich rolling mills.
"The change in raw material mix will realize positive system effects for Hydro's
German aluminium activities and is part of our ongoing optimization efforts and
adaptation to challenging market conditions," said Executive Vice President
Oliver Bell of Hydro's Rolled Products business areas.
In preparation for a ramp-up of primary sourcing in Neuss, planned for the first
half 2013, Hydro has secured power contracts with Swedish energy group
Vattenfall, totalling 2.2 TWh (250 MW) annually over five years. The power
contracts are a combination of new and existing power arrangements, the latter
adapted for supplying Neuss operation.
The primary production in Neuss is dedicated to source Hydro's rolled products
business. The plant has sourced power on short-term basis since the previous
long-term contract expired in end-2005.
"Improved framework conditions, including expected CO2 compensation in Germany,
are giving relief to this efficient smelter. When the expected CO2 compensation
is in place, we aim to resume some of the curtailed production in Neuss,
increasing production to around 150,000 tonnes per year during the first half of
2013," Bell said.
Since March 2009, Neuss has operated at a lower production level of 50,000
tonnes per year, compared to a total production capacity at around 230,000
tonnes, in response to the weak global demand and prices for aluminium.
The smelter was integrated into Hydro's Rolled Products business area January
1, 2012. The integration has realized positive synergy-effects, and identified
further potential. Ramping up production of primary metal will realize these
positive system effects for Hydro's rolled products operations in the Neuss-
Grevenbroich aluminium cluster. It will replace costly remelting of cold metal
as source for rolled products.
The Neuss plant, 100 percent owned by Hydro, is located in western Germany,
close to Düsseldorf.
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, ncluding, 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.
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE
[HUG#1638474]
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Datum: 04.09.2012 - 10:37 Uhr
Sprache: Deutsch
News-ID 179768
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