Hydro boosts capacity for growth market in automotive products
Feb 25, 2014
OTC Disclosure News Service
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.
Contact P?l Kildemo
Cellular +47 97096711
Contact Halvor Molland
Cellular +47 92979797
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.
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