Norsk Hydro: Hydro boosts capacity for growth market in automotive products
February 25 2014 - 1:08AM
Norsk Hydro ASA will invest in a new production line at its
rolled products plant in Grevenbroich, Germany. The new line will
increase annual capacity for aluminium car body sheet to 200,000
metric tons. "In the search for light-weighting vehicles
and reducing CO2 emissions, automotive customers are looking for
innovative solutions in aluminium. We are therefore increasing our
production capacity of state-of-the-art automotive body sheet,"
says Executive Vice President Oliver Bell, head of Hydro's Rolled
Products business area. The new line, which has an estimated cost
of EUR 130 million, is following a recent decision to expand the
annual continuous heat treatment capacity from 20,000 to 50,000
metric tons. The expansion will include annealing and surface
treatment lines, part of a flexible plant concept and innovative
production processes at Hydro's Grevenbroich plant. Combining newly
developed high performance aluminium alloys and state-of-the-art
surface qualities, yields unmatched forming properties. Aluminium
body sheet from the new production line will be used in
manufacturing automotive components, including car hoods, doors,
tailgates and side panels. "With this substantial investment, we
are pursuing our strategy towards the growth market within
automotive, while also expanding our product portfolio. We are
reinforcing our position in the European automotive market, and as
the largest producer of flat-rolled products in Europe,
strengthening our Grevenbroich plant in Germany as an industry
location for advanced rolled products", says Bell. The new
production line will be completed in the second half of 2016. The
cost of the investment will be distributed in the period 2014-2016,
and does not change Hydro's earlier capex guidance for 2014.
Investor contact Contact Pål Kildemo Cellular +47 97096711
E-mail Pal.Kildemo@hydro.com Press contact
Contact Halvor Molland Cellular +47 92979797 E-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#1764251
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