Norsk Hydro: Hydro decides on permanent closure of Kurri Kurri aluminium plant
May 8, 2014 (Source: Globe Newswire) — Hydro has decided to permanently close its Kurri Kurri aluminium plant in Australia. Production at the plant ceased in 2012.
After being in care and maintenance mode since 2012, the decision to permanently close the Kurri Kurri aluminium plant is allowing for remediation and redevelopment options for the site to progress.
The decision to cease production at the Kurri Kurri aluminium plant in 2012 was based on the overall market situation for aluminium, such as the continued weak macro-economic environment, with low metal prices, uncertain market outlook and strong Australian dollar (AUD) relative to the U.S. dollar (USD).
Hydro has been evaluating and preparing for a possible closure and has been working on plans for the future of the site, resulting in the decision to permanently close. These plans will be further developed in consultation with the local community and other stakeholders.
“We are committed to maintaining our good relationship with stakeholders and the local community, and to understanding their views, values and concerns and to keeping them informed and involved throughout the phases of the project,” says Hilde Merete Aasheim, executive vice president of Hydro’s Primary Metal business area.
Costs of closure are expected to be offset by the sale of land and equipment.
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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