Johnny Undeli, manager of Hydro’s Extruded Products Division, gives his views on the current recession and present challenges as well as the major opportunities for significant economic, technical and environmental developments in the future.
“The aluminium industry is, in common with the majority of industries, in a deep recession. In Europe we have seen a fall of some 35 per cent compared to the 50 per cent in America. The current recession has resulted in a drop in demand in most businesses. Political initiatives with stimulus packages for the construction industry have however meant that Hydro Building Systems continues to perform well.”
“As with other companies in the same situation, we at Hydro have had to adapt to current business and market conditions. As a result, the staff of Extruded Products has been reduced from 12,000 to 9,000. This measure has led to a careful optimisation of staff resources that has not only focused on production-related capacity but also on the administrative staff, not least in our head office in Oslo. These changes within our organisation to meet the prevailing situation have obviously also been combined with other steps to cut costs and streamline our economy. Developments up to the end of the second quarter however indicate a continuation of the negative trend in the market.”
Despite the recession and the trimming of our capacity, our organisation and the product concept itself still possess potential and will lead the way to successful developments and strong future growth. In a world that strives to manage resources efficiently and is very environmentally aware, our aluminium-based products and technology are a key part of the answer! This, combined with Hydro’s integrated business and downstream resources from primary metal through manufacturing to recycling, means that we are well equipped to take on the future when the economy recovers. I see a long series of factors and opportunities that back this up.”
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| There is continuous expertise and knowledge transfer between our units, markets and business areas, not least within solar energy technology. |
“Our material and the products made from it have a strong environmental profile.
Hydro’s metal production in Norway is based on hydroelectric power which has coined the phrase ‘the green billet’! This gives us a major competitive advantage over other companies in our business, and the demand for aluminium produced in an environmental-friendly way is steadily increasing. Green metal throughout the whole value-added chain combined with the metal’s inherent properties creates environmental- friendly, sustainable and easily recyclable products.”
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| Our activities in Hydro Building Systems have made us a world leader in the development and production of sustainable and energy-saving building systems. |
“The applications for aluminium are increasing not least for environmental reasons. Lighter designs in transport contexts save fuel. Sustainable and ‘intelligent’ designs in the building sector save resources and energy. Our skills and resources enable us to provide our customers with the technology and solutions to develop new products or to convert traditional designs and materials to green answers in aluminium.”
“The focus of the construction industry is increasingly on energy-saving building designs. Hydro Building Systems has made us a world leader in the development and production of sustainable and energysaving building systems.”
“Every member of staff in Extruded Products is provided with an individualised training programme on top of our basic Health, Environment, Safety platform. The courses are designed against the background of the needs of the local operation for skill requirements. Training and skill improvement are key concepts that ensure future competitiveness.”
“Our organisational model is decentralised where operational decisions and day-to-day management are the responsibility of each unit. This model makes sure each one is efficient and flexible, well suited to its markets to the benefit of both the staff and our customers.
Strategic decisions and creativity at the central level provide the guidelines for the future development of the company.”
“As Hydro has grown from a collection of business areas within artificial fertilisers, oil and aluminium to become an integrated aluminium company, the management work has a strongly operational and business oriented character. There is continuous expertise and knowledge transfer between the company’s business areas which creates optimal synergy effects when it comes to technical, production and business opportunities. This so-called crossover business can, for example, mean the transfer and exploitation of our experiences in solar energy in the USA to Europe or the development of new solar energy solutions in our building façade designs.”
“Our future development is based on the collected exploitation of all Hydro’s resources in what is today one of the world’s largest integrated aluminium companies. In our development in the future we are going to give priority to increased exposure and growth downstream in the value-added chain such as extrusion, machining and value adding, the building sector and selected areas within the automotive industry.
Apart from organic growth, we see opportunities for growth through strategic take overs with our stronger cash situation and an economy suitable for acquisitions.”
“Consequently, together with our customers, we are well equipped to create today’s and tomorrow’s competitive, resource economical and environmental friendly-products!”
