Hydro invests in Dutch anode capacity expansion

(Oct. 3, 2001) Hydro will cover prebaked anode supply requirements for its aluminium plant at Sunndal by extending participation in Rotterdam-based company Aluchemie, Europe's largest producer of anodes.

Hydro will invest some NOK 610 million (USD 69 million) into expanding the company's production capacity. This will provide Hydro the right to 110,000 tonnes of anodes per year, in addition to the approximately 90,000 tonnes currently supplied, when expansion work is completed during the second half of 2003. The investment figure includes interest during the development period and meets Hydro's requirements to rate of return.

Sunndal's remaining anode requirements will be covered through the planned upgrading of Årdal Carbon, which should be completed during the first half of 2004.

Hydro Aluminium Metal already holds a 21.2 percent interest in the company Aluminium & Chemie Rotterdam B.V., Aluchemie, and is represented on the company's board of directors. Hydro's new rights are secured through so-called participation rights. The plant will be operated by Aluchemie, that will also be in charge for carrying out the investment project.

In June this year, potroom capacity at the metal plant at Sunndal was approved expanded by 238,800 tonnes to a total capacity of 328,800 tonnes per year. Construction work is well underway and the project is progressing according to plan. The first section will come on stream at the end of 2002 and New Sunndal will be fully operative in 2004.