OSLO, Norway, April 04, 2003 (PRIMEZONE) -- Norsk Hydro (NYSE:NHY): Alumina do Norte do Brasil S/A, Alunorte, will inaugurate on Friday, April 4, its third production line, which makes Alunorte the largest producer of alumina in South America. Hydro Aluminium has a 34 percent stake in Alunorte.
Alunorte's annual production capacity will increase from 1.6 million tonnes of alumina to 2.4 million tones -- an increase of 50 percent. Hydro has participated in the expansion project with 50 percent, thus increasing its share of Alunorte from approximately 25 percent to 34 percent. Alunorte has the lowest conversion cost worldwide in the alumina industry.
This stake entitles Hydro to more than 800,000 tonnes per year of alumina, which is used as a raw material in Hydro Aluminium's global primary aluminium production and contributes to further improve the cost position of the Hydro Aluminium primary aluminium production.
The expansion of Alunorte enables Hydro to cover approximately 50 percent of its alumina requirements from equity production.
In addition to increasing alumina capacity, the Alunorte project has included the construction of new port facilities and additional power generating capacity. The project's investments total US $300 million.
The Alunorte project has met its 30-month time schedule and has been completed well inside the initial budget.
Alunorte, located near Belem, the state capital of Para in northeastern Brazil, has a staff of 650 people.
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, 2002 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.
Contact Thomas Knutzen Hydro Aluminium
Telephone +47 22539115 Drammensveien 264 Vaekeroe
Cellular +47 90612359 N-0246 OSLO
E-mail Thomas.Knutzen@hydro.com Norway
Phone: (+47) 22 53 81 00
Fax: (+47) 22 53 79 30
www.hydro.com