Hydro Aluminium to adjust primary metal production at Karmøy

(Dec. 16, 2002) Hydro Aluminium is to reduce temporarily its planned production of primary aluminium at Karmøy. This reduction is a result of the power supply situation in the current energy market.

Through these measures, Hydro Aluminium Karmøy will reduce its power consumption by about 60 GWh up to the end of April 2003. The production of primary aluminium during the same period will be about 3,500 tonnes less than planned, which also means a reduced production of extrusion ingot.

This reduction is to be carried out by not restarting as planned aluminium reduction cells that have been disconnected for relining. Other cells that are due to be disconnected for relining during the next few months, and which have certain operational problems, will be shutdown during the next few days. In this way, HA Karmøy can improve operative stability in its Søderberg facilities.

The extraordinary situation in the Scandinavian power market, in addition to the fact that the market for extrusion ingot is seasonal and always weaker at the start of a new year, makes these measures in the Søderberg facilities at Karmøy quite logical. Hydro has already initiated similar adjustments at Hydro Aluminium Sunndal.

No layoffs will occur in connection with this cut in production, but it is expected that the use of temps and overtime will be reduced.