Hydro, Talum ink long-term supply deal

(Oct. 9, 2003) Hydro Aluminium and the Slovenian aluminium producer Talum have entered into a long-term purchase agreement for foundry alloy casthouse products.

According to the terms of the agreement, Talum will supply Hydro with about 70,000 metric tons of foundry alloy products annually over the next seven years, starting in January 2004.

NEW: The new Foundry Alloy agreement comes in addition to the long-term deal between Hydro Aluminium and Talum for extrusion ingot products.

"The new agreement means the continuation of our good cooperation with Hydro Aluminium," says Danilo Toplek, who is president of Talum's management board. "We are pleased about the agreement and convinced that this will complement our strength in the best way."

Helge Jansen, who is head of the Metal Products sector's Foundrys Alloy business unit, supports the view. "This additional capacity will help Hydro Aluminium support the growth strategy of our customers in Central, Eastern and Southern Europe.

"Talum is known for its high product quality and reliability, combined with a flexible customer approach," says Jansen. "This fits very well with our own manner of thinking."

Hydro and Talum have been cooperating since 1987. In addition to the new foundry alloys deal, Hydro Aluminium and Talum have long-term contracts for extrusion ingot products.

Talum is based in the northeastern part of Slovenia, in Kidricevo. It is a joint-stock company and has been a producer of primary aluminium for about 50 years.