First metal at Xi'an

(Nov. 30, 2001) The construction of Hydro Magnesium's foundry unit in Xi'an, China, is complete and the first metal has been cast.

The plant is now in start-up phase, with 22 operators on board since Nov. 14 undergoing intensive training with the new equipment. Supervision by experienced Hydro Magnesium staff will continue throughout 2002 to ensure safe operation in the plant and high quality production standards.

Commercial production will begin in the first months of 2002, and Hydro Magnesium is planning to produce 6,000 metric tons of high-quality alloys and 150 tons of anodes next year.

The plant will have 75 employees and a total capacity of 10,000 tons per year of alloy and 400 tons per year of anodes. Alloy production will be shipped primarily to Asian markets, while anode production will be mainly for the Chinese water heater market.

Hydro Magnesium Xi'an is to meet the same high standards of quality established by the other Hydro Magnesium production plants.

Hydro Magnesium expects this first venture in China to provide the foundation for additional activities in the future.