Read the full English release here.
The value adjustments result from the deteriorating market conditions and high purchasing costs. Hydro will continue to take significant corrective action to address the unforeseen market situation through reduced production, lower investment and major cost-cutting initiatives.
Around NOK 1.4 billion relates to value adjustments in the Aluminum Metal business area, mainly related to the primary aluminum production in Neuss and the participation in the Alpart alumina refinery in Jamaica. Both locations are adversely affected by the weak aluminum price combined with high costs for energy and other raw materials.
Hydro is considering further reducing its primary aluminum production, especially at the Neuss smelter, which has the highest cash cost of any hydro smelter.
Hydro has already reduced the remelting of aluminum by around 45%, which corresponds to a reduction of 500,000 tons per year.