OSLO, NORWAY--(Marketwire - Sep 4, 2012) - 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
German aluminium activities and is part of our ongoing optimization efforts
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
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
adapted for supplying Neuss operation.
The primary production in Neuss is dedicated to source Hydro's rolled
business. The plant has sourced power on short-term basis since the
long-term contract expired in end-2005.
"Improved framework conditions, including expected CO2 compensation in
are giving relief to this efficient smelter. When the expected CO2
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
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
1, 2012. The integration has realized positive synergy-effects, and
further potential. Ramping up production of primary metal will realize
positive system effects for Hydro's rolled products operations in the
Neuss-Grevenbroich aluminium cluster. It will replace costly remelting of
as source for rolled products.
The Neuss plant, 100 percent owned by Hydro, is located in western Germany,
close to Düsseldorf.
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
strategies for Hydro, such as planned expansions, investments or other
(c) targeted production volumes and costs, capacities or rates, start-up
cost reductions and profit objectives, (d) various expectations about
developments in Hydro's markets, particularly prices, supply and demand and
competition, (e) results of operations, (f) margins, (g) growth rates, (h)
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
extent to which a particular projection is realized. Factors that could
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
demand for aluminium and aluminium products; world economic growth,
rates of inflation and industrial production; changes in the relative value
currencies and the value of commodity contracts; trends in Hydro's key
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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originality of the information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE