Hydro to Build Plant in Mexico
June 22 2004 - 3:58AM
PR Newswire (US)
Hydro to Build Plant in Mexico OSLO, Norway, June 22
/PRNewswire-FirstCall/ -- To better serve the growing automotive
markets, Norsk Hydro ASA has decided to construct a new aluminium
precision tubing plant in Mexico. The new capacity will secure
Hydro's position as the global market leader in aluminium precision
tubing for the automotive industry. The Mexican market for
Automotive Tubular Profiles and Precision Drawn Tubes, used in
automotive heat transfer applications is experiencing strong
growth. Hydro will build its new plant in Reynosa in North Mexico,
with most top customers located in the same region. This will allow
lower transportation costs, reductions in lead-time and inventory
as well as improved service. Total capital expenditure is expected
to be approximately USD 30 million (NOK 220 million). Construction
works will start in August this year, and the plant is expected to
start production late fall 2005. Hydro will establish Reynosa as a
state of the art manufacturing facility based on technology from
its plants in Tonder, Denmark, and Rockledge, USA. The Reynosa
plant will create about 100 new jobs. The Reynosa plant is the 2nd
expansion of the Hydro Automotive Precision Tubing activities in
less than one year, as the new Greenfield operation in Suzhou,
China was approved last November. Certain statements in this press
release are or may constitute "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Statements that are not in the nature of historical facts may
be deemed to be forward-looking statements and may contain
identifying words such as "believes", "anticipates", "plans",
"expects" and similar expressions. These forward looking statements
are based on Hydro's current expectations, assumptions, estimates
and projections about the company and the industries in which it
engages in business. All forward- looking statements involve risks
and uncertainties. For a detailed description of factors that could
cause Hydro's actual results to differ materially from those
expressed in or implied by such statements, please refer to its
annual report on Form 20-F for the year-ended December 31, 2002 and
subsequent filings on Form 6-K with the U.S. Securities and
Exchange Commission. With respect to each non-GAAP financial
measure Hydro uses in connection with its financial reporting and
other public communications, Hydro provides a presentation of what
Hydro believes to be the most directly comparable GAAP financial
measure and a reconciliation between the non-GAAP and GAAP
measures. This information can be found in Hydro's earnings press
releases, quarterly reports and other written communications, all
of which have been posted to Hydro's website
(http://www.hydro.com/). Contact Idar Eikrem Tor Steinum Telephone
(+47) 22 53 32 73 (+47) 22 53 27 31 Cellular (+47) 95 02 83 63
(+47) 95 08 39 33 E-mail DATASOURCE: Norsk Hydro ASA CONTACT: Idar
Eikrem, +47-22-53-32-73, or Cellular: +47-95-02-83-63, or , or Tor
Steinum, +47-22-53-27-31, or Cellular: +47-95-08-39-33, or , both
of Norsk Hydro ASA Web Site: http://www.hydro.com/
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