OSLO, Norway, March 18, 2003 (PRIMEZONE) -- The Board of Norsk Hydro (NYSE:NHY) has today approved the construction of a new chlorine plant at Rafnes. The investment, estimated to cost in the region of NOK 1 billion, approximately EUR 127 million, is expected to be very profitable. Production is planned to start up in 2005.
Production capacity will be doubled to 260,000 tonnes. Hydro's petrochemical production at Rafnes is based on the import of considerable supplies of chlorine, an important raw material used in the production of PVC and the intermediate product VCM. The new plant will primarily eliminate the import requirement and ensure that the plant is self-supplied with chlorine.
"While our plans to divest the petrochemicals business remain unaffected, it is nevertheless important for us to develop and enhance the values inherent in the operation," says Hydro's president and CEO Eivind Reiten.
"This investment will improve the competitiveness of the business. Furthermore, it is necessary for environmental reasons and will help to ensure the basis for future petrochemical activity in the area, regardless of the ownership constellation."
The new plant will be based on the best available technology. Emissions, including CO2 , will remain at the same level as those from the current plant, despite the doubling of production. The production increase will not affect manning levels.
While the old plant utilizes diaphragm technology, the new one will be equipped with the latest generation membrane electrolysers. In addition to chlorine, the plant will produce 140,000 tonnes caustic soda annually. "This investment will boost our competitiveness," states president Anders Hermansson, who heads Hydro's petrochemicals business. "We are currently dependent on purchasing chlorine from external sources and the market for chlorine in Europe has tightened considerably in recent years. Moreover, transporting large quantities of chlorine to Rafnes, in the form of the intermediate product EDC, is costly and not an attractive proposition in the long run."
Certain statements in this press release are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes", "anticipates", "plans", "expects" and similar expressions. These forward looking statements are based on Hydro's current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro's actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 2001 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.
Contact: Ole Johan Sagafos, (+47) 91 30 80 36, Ole.Johan.Sagafos@hydro.com
Cecilie Ditlev-Simonsen, (+47) 22 53 20 97, (+47) 41 55 92 50, Cecilie.Ditlev-Simonsen@hydro.com
Norsk Hydro ASA, Bygdoey alle 2 N-0240, Oslo, Norway, Telephone: (+47) 22 53 81 00, Fax: (+47) 22 53 27 25, www.hydro.com