Norsk Hydro: Hydro decides on permanent closure of Kurri Kurri aluminium plant
08 May 2014 - 4:03PM
Hydro has decided to permanently close its Kurri Kurri aluminium
plant in Australia. Production at the plant ceased in 2012.
After being in care and maintenance mode since 2012, the
decision to permanently close the Kurri Kurri aluminium plant is
allowing for remediation and redevelopment options for the site to
progress.
The decision to cease production at the Kurri Kurri aluminium
plant in 2012 was based on the overall market situation for
aluminium, such as the continued weak macro-economic environment,
with low metal prices, uncertain market outlook and strong
Australian dollar (AUD) relative to the U.S. dollar (USD).
Hydro has been evaluating and preparing for a possible closure
and has been working on plans for the future of the site, resulting
in the decision to permanently close. These plans will be further
developed in consultation with the local community and other
stakeholders.
"We are committed to maintaining our good relationship with
stakeholders and the local community, and to understanding their
views, values and concerns and to keeping them informed and
involved throughout the phases of the project," says Hilde Merete
Aasheim, executive vice president of Hydro's Primary Metal business
area.
Costs of closure are expected to be offset by the sale of land
and equipment.
Investor contactContact Pål KildemoCellular +47 97096711E-mail
Pål.Kildemo@hydro.com
Press contactContact Halvor MollandCellular +47 92979797E-mail
Halvor.Molland@hydro.com
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.
This information is subject of the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
HUG#1783649
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