New remelter breaks ground

(Nov. 14, 2001) Norsk Hydro held a groundbreaking ceremony Nov. 13 for a new aluminum remelting plant in Commerce, Texas, near Dallas.

The $37 million investment is part of long-range strategy to increase Hydro's presence in the North American market. The company is the world's largest supplier of billet.

The new aluminum plant will have a capacity of 90,000 metric tons of primary quality aluminum from scrap and will utilize Hydro's proven state-of-the-art technology. It will start operations in November 2002. Construction will start this fall.

Hydro chose to build the plant in Commerce in order to better serve the demand of the Southwestern aluminum market. Customers will be from the transportation and building and construction sectors.

The plant in Commerce will be designed to produce primary quality aluminum billet from scrap using only 5% of the energy consumed in typical primary aluminum production. Besides being energy efficient, the plant will also enable customers to recycle their own scrap, in ways that optimize their own production processes. This concept has been proven by Hydro's network of remelt plants in Europe.

"The city of Commerce welcomes the investment and commitment of Norsk Hydro. We are extremely excited about this new state-of-the-art aluminum remelt plant, and the many high paying jobs it will create for the community," commented Mayor John Sands, Mayor of Commerce, Texas.

"In addition to the economic benefits, the plant also has a significant impact on the environment. Besides saving energy, the plant operates without the use of chlorine unlike other recycling operations, thereby reducing emissions into the air and water. Norsk Hydro is making positive contributions to the city of Commerce, its environment and to its inhabitants."

The Henderson, Kentucky recycling plant, which officially opened in May of this year with an annual capacity of 90,000 metric tons, marked the first equity investment in primary metal production by Hydro for an aluminum production facility in North America. The Commerce, Texas plant marks the second.

Through the acquisition of Wells Aluminum, Hydro also got access to its remelt facility in Monett, Missouri, making Hydro's current remelting capacity in the United States over 175,000 metric tons annually.

"We are thrilled to become part of the Commerce community," commented Jim Walters, president of Hydro Aluminum Metal Products N.A. "When we announced the first remelt plant in Henderson, it was part of a commitment we made to expand our remelter capacity in the United States in order to increase the supply of primary quality billet in a market that is not producing enough aluminum to meet expected demand.

"Based on the success of the product quality from the Henderson plant, and the feedback we have gotten from our customers, we are confident that this new remelt plant in Commerce, Texas will achieve the same level of acceptance and success. We are committed to expanding our sources of supply to our customers in the U.S."

Added Lars Narvestad, senior vice president of Hydro Aluminum Metal Products N.A.: "Eight years ago, Hydro's effort to improve the operational and technical quality of recycling became a core business. Now, Hydro is a leader in this remelt technology. As a result of this technology we have increased our aluminum remelting 10-fold. Today, one out of three tons of aluminum Hydro sells has been remelted."

Hydro Aluminum is in the process of recruiting for management positions in this new Texas facility. Those interested should forward their resume to Gina.Pertee@hydro.com for consideration.

Since 1986, Norsk Hydro has been supplying aluminum to customers in the United States. In Louisville, Kentucky, Hydro Aluminum Metal Products – North America handles sales from all internal and external sources. The Louisville office also operates Hydro's extensive trading activities in the United States.

Hydro Aluminum Metal Products is the leading supplier of billet worldwide and a leading supplier of aluminum cast house products in Europe. Norsk Hydro's global aluminum activities extend to the entire material chain of aluminum, including the mining and refining of bauxite into alumina, the production of primary aluminum, semi-fabrication and fabrication of aluminum products and remelting and recycling.