Norsk Hydro considers cutting output at its Kurri Kurri, Australia, primary aluminum plant reportedly due to weak economy, low metal prices and uncertain market outlook; plant has three production lines with annual production capacity of 180,000 tonnes

Alison Gallant

OSLO, Norway , January 11, 2012 (press release) – Norsk Hydro ASA is considering curtailing production at its Kurri Kurri aluminium plant in Australia. A consultation process has started with the local employees.

Norsk Hydro ASA is considering curtailing production at its Kurri Kurri aluminium plant in Australia. A consultation process has started with the local employees.

The Kurri Kurri primary aluminium plant.KURRI KURRI: The primary metal plant in Kurri Kurri began operations in 1969. Hydro became owner of the plant through its 2002 acquisition of VAW aluminium AG. (Photo: Halvor Molland)

The Kurri Kurri plant in Australia is fully pwned by Hydro.

DEMANDING SITUATION: The Kurri Kurri plant in Australia with its three production lines.

"In response to the demanding situation, we are considering reducing aluminium production at Kurri Kurri. We will continue to stay in close dialog with all affected stakeholders, including employees, unions and the local community, throughout this process," says Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.

This is a response to the weak macro-economic environment, with low metal prices and uncertain market outlook. In addition, Kurri Kurri is suffering from a strong Australian dollar relative to the U.S. dollar.

In case of a curtailment at Kurri Kurri, Hydro is confident that customer commitments will be served through its global metal products supply system.

Kurri Kurri, fully owned by Hydro, has three production lines with a total annual production capacity of 180,000 metric tons. The plant, located near Newcastle in New South Wales, employs around 500.

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