Our performance

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Primary Metal 

2010 targets

  • Reduce cost per mt by USD 100, realizing 90 percent by end 2011
  • Effective ramp-up of Qatalum completed during fourth quarter 2010
  • Achieve measurable benefits toward cost reduction from AMPS
  • Enhance value from existing alumina assets
  • Assertive approach in raw materials markets
  • Strong capital discipline

2010 results

  • Cost reductions ahead of plan
  • Ramp-up of Qatalum negatively impacted by power outage
  • Achieved significant operational stability improvements in Norwegian smelters and Neuss
  • Assertive approach in tight markets for strategic raw materials
  • Reduced investments and expenditures for major maintenance  

2011 targets

  • Safe and efficient operations
  • Effective integration of Albras smelter
  • Cost reductions extended to USD 300 per mt, including USD 175 per mt by end 2011
  • Complete Qatalum ramp-up
  • Continue strong capital discipline

Ambitions going forward
Hydro has an ambition to expand its upstream activities while maintaining a strong emphasis on sustainable cost development. We will continue to focus on lean smelter operations, operational excellence and safety. The ongoing development of next-generation technology, HAL4e, will provide a strong technological basis for continued organic growth, increased efficiency and lower emissions. 

Metal Markets

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2010 targets

  • Successful market entry for Qatalum's value-added metal products
  • Utilize flexibility in remelting and recycling production systems to capture opportunities
  • Operational excellence and safety in plant operations
  • Profitable metal sourcing and trading activities and efficient hedging operations

2010 results

  • Market entry of Qatalum products but with lower-than-planned volumes due to power failure
  • All Qatalum production sold as value-added casthouse products
  • Full utilization of remelt capacity at record-high production levels
  • Eight of 11 plants with no recordable incidents in 2010
  • Strong operational performance in metal sourcing and trading
  • Captured market opportunities for high purity aluminium and other specialty products

2011 targets

  • Safe operations and improved profitability for all remelt operations
  • Margin improvements for all casthouse products including primary smelter casthouses
  • Execution of Qatalum marketing plan for full production volumes
  • Further develop recycling business opportunities

Ambitions going forward
Our vision is to be the preferred partner for casthouse products and services. Our ambition is to have safe and profitable operations and to increase our global market share. We focus on margin improvements, developing new market opportunities and further cost reductions.

Rolled Products

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2010 targets

  • Further TRI reduction of 20 percent
  • Selective gain in market share and improvement in margins
  • Improvement in operational performance with focus on customer service
  • Maintain focus on cost level and benefits achieved in 2009, counterparty risk and net operating capital
  • Implementation of Rolled Products Business System in all units

2010 results

  • TRI reduction lower than target despite high attention
  • Volume recovery above market level with somewhat higher margins
  • Rolled Products Business System introduced in all units
  • Lower cost per mt and higher labor productivity
  • Lower operating capital relative to business volume
  • No significant counterparty defaults

2011 targets

  • Further HSE improvement to secure safe operations
  • Margin development for non-contracted volumes above 2010 levels
  • Product optimization program implemented at focus plants
  • Increased cost efficiency compared to 2010 achievements
  • Operational performance improvements from ramp-up of Rolled Products Business System
     

Ambitions going forward
We are committed to safety and to eliminating serious accidents in our operations. We aim to increase the returns of our business, concentrating on margins, cost efficiency and operational excellence - well supported by the roll-out of the Rolled Products Business System involving all employees in continuous improvement. We will stay focused on innovation and technology to sharpen our competitive edge.

Extruded Products

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2010 targets

  • Further TRI reduction of 20 percent
  • Decisive cost management and focus on cash flow
  • Realize market, cost and growth ambitions in Extrusion Eurasia
  • Prepare for additional growth and manage additional market challenges

2010 results

  • TRI development with increase in incidents from 2009
  • Volumes increase 14 percent, compared with 6 percent cost increase
  • Strong volume development within Extrusion Eurasia, in particular for solar market segment
  • Several growth projects under development

2011 targets

  • Safe operations with a return to trend of continual reductions in TRI rate
  • Grow volumes and reinforce leading position in Europe
  • Execute further rationalization in European operations
  • Execute growth projects in emerging markets

Ambitions going forward
Our goal is to remain the clear performance leader in Europe's extrusion-based industries, including building systems, reinforcing our leadership position through selective growth and further development of new high-performing solutions. We focus on innovation and technology to sharpen our competitive edge. We are committed to safety and to eliminating serious accidents in our operations. We will actively adjust capacity in markets with insufficient demand. We intend to expand in emerging markets to grow our business and maintain the profitability of our operations.

Energy

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2010 targets

  • Competitive energy-sourcing arrangements for aluminium operations
  • Operational excellence and safe operations
  • Competitive framework conditions

2010 results

  • Successful reconstruction of Suldal I pressure shaft and Svandalsflona power station
  • Positive developments in operating and safety performance
  • Successful power portfolio optimization
  • Investment decision and start of construction of Holsbru power station
  • Extended power-sourcing contract for Tomago smelter at competitive prices until 2027

2011 targets

  • Operational excellence and safe operations
  • Realize committed development and upgrade projects within targets
  • Value enhancement through optimization using asset flexibility
  • Competitive framework conditions and energy sourcing for aluminium operations

Ambitions going forward
Maintaining and increasing the value of our energy assets is a key priority. Our goal is to develop our equity power position and capitalize on our energy competence, supporting the sourcing of power to our smelters on a global basis.

Viability performance

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2010 targets

  • The electrolysis process of aluminium production emits 1.73 t CO2e/t aluminium
  • Develop a recycling strategy
  • No fatal accidents. Total recordable injuries per million hours down by 20 percent to 2.3

2010 results

  • The electrolysis process of aluminium production emitted 1.63 mt CO2e/mt aluminium, thus reaching our target
  • A recycling strategy with ambitious targets was developed
  • Recycling of contaminated and post-consumer scrap increased by 30 percent
  • No fatal accidents in consolidated activities. Total recordable injuries per million hours increased by 27 percent

2011 targets

  • Further lift our recycling volume to improve capacity utilization
  • No fatal accidents. Total recordable injuries per million hours down by 28 percent to 2.7
  • Integrate our new colleagues from Vale Aluminium

Ambitions going forward

  • Aluminium production emits 1.52 mt CO2e/mt aluminium in 2013
  • Recycle 1 million metric tons of contaminated an postconsumer scrap in 2020
  • We intend to be a preferred partner worldwide due to our responsible business operations

Updated: October 11, 2016