Nilsen: Hydro committed to magnesium
(Oct. 12, 2001) Hydro has no plans of pulling out of magnesium. On the contrary, a number of important steps are now being taken to strengthen the company's position. The closure of the unprofitable plant in Porsgrunn is one of them. Unfortunately.
Hydro Magnesium is the world's largest magnesium producer, with a total annual production of approximately 110,000 metric tons primary and recycled metal at its two plants, in Canada and in Norway. A new plant opened recently in China.
"We have to expect and prepare ourselves for continued strong competition from the Chinese. All the producers in the West are suffering, but our market positions and our expertise gives us a good vantage point," says executive vice president Jon-Harald Nilsen, who is responsible for Hydro's Light Metals business.
"We will not, however, survive in this market without a very strong focus on improvements and cost reductions."
He points out that Hydro's position as magnesium producer is outstanding both with regard to the market and expertise. Globally, the company has a market share of 50 percent for alloyed magnesium. Most of this metal is for the automotive industry.
"We expect the use of magnesium in new cars to continue to increase. Therefore, we have to make sure that we will still be able to meet customers' needs for volume and quality in the future as well.
"We are focusing on a metal supply concept where the plant in Becancour will be the main supplier. We will shortly open the first-ever remelt plant in China for upgrading metal, and we will continue to focus on the successful remelt plant in Bottrop in Germany," he says.
An upgrading of the casthouse in Porsgrunn, Norway, for remelting and upgrading used metal and scrap from other producers will now be considered in connection with this concept.
"We expect the Porsgrunn project to be clarified by the end of next April," says Nilsen.
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Hydro Magnesium
Started production at Porsgrunn in 1951.
Plant opened in Becancour, Quebec in 1989.
Hydro Magnesium Xián Co. Ltd. starts production in 2001.
Hydro Magnesium first producer to receive QS 9000 certification
Largest customer today is General Motors, which in 2001 named Hydro Magnesium "Supplier of the Year" for the fourth year in a row, recognizing outstanding levels of service, quality, technology and competitive pricing.
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Links
Magnesium plant to close (2001-10-12)
Brandtzæg: 'No alternative' (2001-10-12)
Press release (2001-10-12)
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