NHYDY Norsk Hydro ASA (QX)

  By Dominic Chopping 
 

Norwegian aluminum and energy company Norsk Hydro ASA (NHY.OS) said Thursday it expects global demand for primary aluminum to grow by 2% to 3% in 2019 and to continue growing at that rate over the next 10 years, but warned that trade sanctions and tariffs are impacting global flows of aluminum.

In slides accompanying its capital markets day presentation, Norsk Hydro said the following factors are all impacting flows: U.S. duties on aluminum imports, sanctions against Russia's United Co. Rusal PLC (0486.HK), Indian duties on imports, and Chinese limitations on scrap imports--which is leaving more scrap in North America and Europe.

Chief Executive Svein Richard Brandtzaeg said that due to the long-running production problems at its Alunorte alumina refinery in Brazil, the company won't be able to deliver on its efficiency program that targeted improvements of 3.0 billion Norwegian kroner ($349.3 million) over a four-year period until end 2019.

The company said that in the short-term it is working hard to resume full operations at Alunorte, following nine months of running at 50% production.

"We are aiming to establish a common platform with authorities and the court system to have an aligned way forward towards full production, utilizing the best available technology," Norsk Hydro said.

Total capital expenditure is estimated to average NOK6.5 billion to NOK7.0 billion between 2018 and 2021. The total capital expenditure estimate for 2019 is NOK10 billion to NOK10.5 billion.

Write to Dominic Chopping at dominic.chopping@wsj.com; @domchopping @WSJNordics

(END) Dow Jones Newswires

November 29, 2018 02:58 ET (07:58 GMT)

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