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Press Release: Norsk Hydro: Hydro prepares to reduce Alunorte production by 50%

28 Feb 2018 6:02 am
 
 
   The Secretariat of Environment and Sustainability (SEMAS) in the 
Brazilian state of Pará has formally notified the Norwegian 
aluminium company Norsk Hydro ASA's refinery Alunorte on Tuesday, 
February 27, to cut the production of calcined alumina with 50%. 
 
   SEMAS has ordered Alunorte to cut 50% in the production of calcined 
alumina and requested the reduction to be completed within March 1. 
Alunorte will receive a daily fine of approx. BRL 500 000 if the 
production has not been reduced in time. Alunorte is currently preparing 
to comply with the requirement set by SEMAS. 
 
   Contingency plans will be implemented to reduce the potential negative 
effect on customers. 
 
   "We are doing our utmost to limit the impact of this challenging 
situation for our employees, our customers and for the communities 
around us," says President & CEO Svein Richard Brandtzæg. 
 
   While it is too early to determine the size and impact, a production cut 
could potentially have significant operational and financial 
consequences. 
 
   The background for these measures taken by SEMAS is non-compliance with 
an order issued by SEMAS on February 23 to have 1 meter freeboard in the 
water basins in DRS1 at Alunorte within the deadline of February 26. By 
adding additional pumps and increasing the water treatment capacity, the 
1 meter freeboard requirement was met on February 27. 
 
   Investor contacts 
 
   Stian Hasle 
 
   +47 97736022 
 
   Stian.Hasle@hydro.com 
 
   Even Simonsen 
 
   +47 97953364 
 
   Even.Simonsen@hydro.com 
 
   Press contact 
 
   Halvor Molland 
 
   +47 92979797 
 
   Halvor.Molland@hydro.com 
 
   Cautionary note 
 
   Certain statements included in this announcement contain forward-looking 
information, including, without limitation, information relating to (a) 
forecasts, projections and estimates, (b) statements of Hydro management 
concerning plans, objectives and strategies, such as planned expansions, 
investments, divestments, curtailments 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, and (i) qualified statements such as 
"expected", "scheduled", "targeted", "planned", "proposed", "intended" 
or similar. 
 
   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 businesses; 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. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Norsk Hydro via Globenewswire 
 
 
  http://www.hydro.com/en/?WT.mc_id=Pressrelease 
 

(END) Dow Jones Newswires

February 28, 2018 01:02 ET (06:02 GMT)
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