No one could miss Hydro in Essen
 MEMORABLE ENTRANCE: Hydro Aluminium's stand stood out at Aluminium 2002 in Essen, where more than 500 companies filled an exhibition space covering 35,000 cubic meters. (Photo: Dag Sunnanå) |
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(Sep. 18, 2002) Strategically placed near the entrance, it was hard to miss Hydro Aluminium's exhibition stand during opening day at Aluminium 2002 in Essen on Wednesday. Hydro's stand resembles a gateway marking the company's new dimension after integrating with VAW.
It was also natural that political VIPs invited to opening day passed through Hydro's gate to learn about the company's activities from Hydro Aluminium information director Marianne Aamodt and managing director Jon-Harald Nilsen.
It was no surprise the replica of a BMW Z8's aluminium frame was popular with both the Liberal Party foreman in the German State of Nordrhein-Westfalen, Jürgen Möllemann, and Essen's mayor Wolfgang Reiniger. The BMW model was additionally loaded with numerous other automotive accessories supplied by Hydro Aluminium.
Hydro's supplier relationship to the automotive industry was also featured in a speech delivered by Hydro Aluminium Automotives chief Dieter Braun. He asked how it is possible to be a profitable supplier to a steadily more demanding and globalized car industry. Braun pointed out that the leading global suppliers in 2001 registered a 25 percent drop in earnings.
 CENTER OF ATTENTION: The aluminium frame for BMW's Z8 was an appetizer for Liberal Party politician Jürgen Möllemann (right) and Essen's mayor Wolfgang Reiniger, both getting information from Hydro Aluminium managing director Jon-Harald Nilsen (middle) at opening day of Aluminium 2002 in Essen on Wednesday. |
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This is happening at the same time aluminium content in automobiles steadily grows. Hydro's challenge is to continually develop its own expertise, but the golden rule, according to Braun, is to stick with established areas and not ponder risky new fields that could end up in the red.
This was also the main issue raised at a press conference where Hydro Aluminium's Nilsen was asked why the company has put Flexible Packaging up for sale. It is demanding and difficult for Hydro to stay focused on a business area it is not experienced in, he replied. Nilsen indicated a buyer would be announced by the end of the year.
Asked how the integration process with VAW has gone, Nilsen remarked it has been an overwhelming success and followed the six-month time plan like clockwork. He also remarked that last year Hydro Aluminium and VAW both individually reserved exhibition stands for Aluminium 2002 - coincidentally ending up side by side.
Earlier in the day, Hydro Aluminium Metal Products president Svein Richard Brandtzæg provided insight to aluminium industry changes that have occurred due to acquisitions and market restructuring. No one should be surprised, he said, adding acquisition can be good protection against hostile takeovers.
Hydro Aluminium's acquisition of VAW, France's Technal and the US-based Wells offers exceptional opportunities to attain a size needed to realize large company advantages in a globalized maket. But it's not always a question of size. Tackling the challenges takes expertise. And from the customer's perspective size is only important if they can source benefits from a large company, Brandtzæg emphasized.
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