Since the end of 2008, Hydro and the other aluminum industry have had to accept massive price reductions for standard rolled aluminum products. In the first few months, these were partially offset by cost savings in manufacturing.
However, the latest price developments do not allow sustained delivery of standard products in the general engineering area - even if the total occupancy of the rolling mills would approach the level of previous years again.
In order to take into account the reduced demand in 2009, Hydro has taken various personnel and organizational measures in the individual rolling mills, which range from the reduction of overtime to short-time work and an extension of the plant vacation. Also in German plants there is a summer standstill for the first time in many years. This has created a balance between incoming orders and current production capacity.
As a further step towards the medium-term sustainability of the General Engineering division, Hydro increases the basic machining price for all uncoated General Engineering rolled products by EUR 20 per tonne. The increase applies immediately.