Norsk Hydro: Søral secures power for continued operation
Sør-Norge Aluminium (Søral) primary aluminium plant in Norway has signed
electricity contracts with Agder Energi, Lyse, Statkraft and Hydro for the long-
term annual supply of up to 2.6 terawatt hours (TWh) of electricity in Norway
over an eight-year period, starting in 2013.
"We are pleased that Søral has been able to secure power supply, paving the way
for continued operations at the plant. We have worked hard to achieve this, and
we are happy that all pieces came together in the end," says CEO Per Øyvind
Sævartveit at Søral.
The combined contracts, together with necessary clarifications concerning
implementation on CO(2) compensation, will secure the basis for continued
commercial operations at the Søral aluminium plant at Husnes, owned by Rio Tinto
Alcan and Hydro. The plant's current power supply contract expires in December
2012.
"This is a milestone for Søral and for Hydro as part owner, and very important
for our Norwegian aluminium operations," says Hydro President and CEO Svein
Richard Brandtzæg. "It shows that Norwegian industry and power producers jointly
can find solutions that ensure that Norway keeps its position as a location for
aluminium production with clean, renewable power. In our view, this is good for
Hydro, for Norway as an industrial nation and for the global climate."
Søral curtailed one of two potlines following the financial crisis in 2009, and
is currently producing around 90Â 000 tonnes aluminium per year. The plant's
production capacity with both potlines in operation is around 185Â 000 tonnes per
year. At full production the plant employs around 340 people. Currently, 250 are
working at the plant.
The renewed power sourcing will not lead to an immediate increase in production
at Søral.
"With renewed power sourcing, we will continue production with one potline until
the owners and Board of Directors decides otherwise," says Sævartveit at Søral.
"The power contracts allow for an increased production at a later stage, should
market conditions improve. In the meantime, we will continue our efforts to
further reduce our cost base and improve efficiency," he says.
Søral is owned by Rio Tinto Alcan (50.0%), Hydro (49.9%) and others (0.1%).
Investor contact
Contact    Stian Hasle
Cellular   +47 97736022
E-mail     Stian.Hasle@hydro.com
Press contact
Contact    Halvor Molland
Cellular   +47 92979797
E-mail     Halvor.Molland@hydro.com
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Source: Norsk Hydro via Thomson Reuters ONE
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