|DEMANDING SITUATION: The Kurri Kurri plant in Australia with its three production lines.
"In response to the demanding situation, we are considering reducing aluminium production at Kurri Kurri. We will continue to stay in close dialog with all affected stakeholders, including employees, unions and the local community, throughout this process," says Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.
This is a response to the weak macro-economic environment, with low metal prices and uncertain market outlook. In addition, Kurri Kurri is suffering from a strong Australian dollar relative to the U.S. dollar.
In case of a curtailment at Kurri Kurri, Hydro is confident that customer commitments will be served through its global metal products supply system.
Kurri Kurri, fully owned by Hydro, has three production lines with a total annual production capacity of 180,000 metric tons. The plant, located near Newcastle in New South Wales, employs around 500.
Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management's plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar statements.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.