Hydro increases improvement ambition from USD 100 to USD 300 per tonne
(Thomson Reuters ONE) -
Hydro's ambition to improve earnings from its wholly owned smelters by USD 100
per tonne is now being increased to USD 300 per tonne. The measures aim to
improve the aluminium smelters' competitiveness and restore profitability to a
sustainable level.
In the autumn of 2009, Hydro launched a cost improvement program in order to
reduce operating costs by USD 100 per tonne of primary aluminium produced by the
end of 2011, compared to the 2009 level. The program is on schedule.
"We must make the smelters more robust. Competition is hard in the aluminium
industry, and with a continued uncertain market situation, we need to take the
necessary steps to improve our long-term competitiveness," says Hilde Merete
Aasheim, executive vice president and head of Hydro's Primary Metal business
area.
"We will now increase our ambitions and implement measures which will help
improve our cost position by a further USD 200, mainly by the end of 2014,"
Aasheim says.
The autumn 2009 program to reduce costs by USD 100 per tonne has been focusing
on operational improvements, where a more stable operation of aluminium
production means lower production costs.
The existing improvement program will now be extended, and Primary Metal will
improve efficiency, implement improvements and reduce costs in areas such as
purchasing, logistics, technology, manning and organization. In addition, the
aim is to obtain a further improvement from margins on metal products from the
smelter casthouses - in total, USD 300 per tonne in improvements when all
measures are identified and implemented.
The improvement program will focus on costs we are able to influence, mainly
so-called conversion costs, in Hydro's wholly owned aluminium smelters. The
improvements do not include the effect of somewhat higher energy costs in coming
years, or fluctuations in raw material prices and other input factors.
Press contact
Contact: Erik Brynhildsbakken
Cellular: +47 41751270
E-mail: Erik.Brynhildsbakken(at)hydro.com
Investor contact
Contact: Stefan Solberg
Cellular: +47 91727528
E-mail: Stefan.Solberg(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 acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1445937]
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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
Unternehmensinformation / Kurzprofil:
Datum: 22.09.2010 - 08:32 Uhr
Sprache: Deutsch
News-ID 42915
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contact information:
Town:
Oslo
Kategorie:
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"Hydro increases improvement ambition from USD 100 to USD 300 per tonne"
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