Further production curtailment at SØRAL
by Hydro Aluminium AS 11 Feb 22:58
(February 10, 2009)
Sør-Norge Aluminium AS (SØRAL), owned 49.9 percent by Hydro, will reduce its aluminium production by another 25 percent, resulting in a total reduction of 50 percent at the smelter at Husnes, Norway.
Last december, SØRAL’s board of directors announced that it was contemplating a 25 percent reduction of its 2009 hot metal production at Husnes. On Tuesday, the SØRAL board decided to temporary curtail the production of one of the two potlines at the Husnes facility, effective as of March 1.
Following the additional 25 percent reduction, the plant will produce around 86,000 tonnes annually. Plant capacity is around 173,000 tonnes.
The measures are a response to the unprecedented rapidity and severity of the global economic downturn, which has caused sharp falls in commodity prices and a significantly weaker demand outlook.
As a result of the production cut, the total workforce of 370 employees and 35 contractors will be temporary reduced. The details of this workforce reduction will be decided in cooperation with the unions, and this consultation process has already started.
Hydro has an ownership share of 49.9 percent in SØRAL, while Rio Tinto Alcan owns 50 percent and others 0.1 percent.
Read the full statement from SØRAL at www.soral.no/no