Jon-Harald Nilsen: Good prospects of future market growth
(Sep. 20, 2004) Hydro envisages an annual growth of 4.4 per cent in the western world's aluminium markets for 2004-2007, with even greater growth in the automotive area of 5.6 per cent. Jon-Harald Nilsen, Hydro Aluminium executive vice president, presented these figures in the International Aluminium Conference in Oslo today.
In his address to the more than 500 delegates in the conference Nilsen was positive to the medium term market prospects. After a de-stocking of aluminium already produced, he expected growing metal deficits in Europe and the US, while most primary aluminium exports will come from Russia, Canada, South America and Australia.
 OSLO CONFERENCE: Jon-Harald Nilsen, Hydro Aluminium executive vice president, welcomed more than 500 delegates to the International Aluminium Conference in Oslo. (Photo: Terje S. Knudsen) |
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The development in China will have a strong influence of the global aluminium markets. China is already the largest national producer of primary aluminium and the fastest growing transformer of primary metal. China will emerge as the largest single market for aluminium within a ten-year period, and Nilsen expected China to be basically self-sufficient with aluminium metal units, the market-balance being close to neutral.
The growth in aluminium demand continues the trend of more than 50 years when aluminium has outperformed other metals due to its valuable properties.
Hydro Aluminium is the largest aluminium supplier in Europe an one of the top three, global, integrated aluminium companies. Jon-Harald Nilsen explained that Hydro focuses on innovation throughout the value chain to improve the performance of both Hydro as well that of its customers.
Hydro’s metal supplier concept enables the company to adjust to the new structures in the market. "Based on commercial and technical skills, we go to market with a volume of more than three million tonnes of aluminium products, more than two times our primary production, with limited extra capital employed. In addition to alliance partners, we manage material from the scrap market and ingot sources in other regions".
"Innovation is an important contributor to our strong market positions", Nilsen stated and explained how Hydro is bringing new innovative products to the market in the building, the automotive and the packaging markets:
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Hydro’s light-weight solutions has accomplished a 19.9 kg weight reduction in the front end of the new BMW 5-series. This is the result after introducing close to 30 kg of aluminium components. Hydro has also introduced new technologies to automotive radiators, also improving the environmental performance of the component.
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In the building segment Hydro has developed new façade concepts which will be ready to meet the tighter European regulations for the energy performance of buildings, valid from early 2006.
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Superior packaging solutions help the protection of food quality.
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Hydro’s new primary aluminium production plant in Sunndal, Norway, represents the best available technology in fume treatment ensuring the best environmental performance of any primary aluminium production worldwide.
Downstream Hydro is expanding in growth markets or low-cost countries like Poland, China and Mexico.
"We will continue to focus on bottom-line growth," said Jon-Harald Nilsen and he highlighted capitalizing on Hydro's unique portfolio and value chain, but also the continued sharing of best practice and an active portfolio development.
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