Investment in Venezuela

Norsk Hydro, the Norwegian oil and energy, light metals and plant nutrition group, has today announced that it is to invest approximately USD 5 million in Pianmeca, a Venezuelan aluminium casthouse. Hydro will receive 33.3 per cent of the shares in the company.
Pianmeca is located in Puerto Ordaz in the state of Bolivar, and will produce approximately 30,000 tonnes of extrusion ingot and 8,000 tonnes of wire rod. Further increases in production will be made through investment and plant improvements. The plant is located next to the Venalum metal plant which will be a supplier of liquid aluminium to Pianmeca.
The Pianmeca investment is a part of Hydro’s strategy to expand its global supply of extrusion ingot and wire rod. Having a metal source in Venezuela will serve Hydro’s growing aluminium market in the Americas and Europe, Hydro’s aim being to be among the top suppliers of extrusion ingot in these regions. In November of this year, the company’s casthouse operations in Henderson, Kentucky, will start operating with an initial capacity of 90,000 tonnes per year of extrusion ingot based on aluminium scrap. In addition, the production of extrusion ingot at Goldendale Aluminum company, Hydro’s tolling agreement partner located in the State of Washington, will increase due to the recent casthouse expansions.
As a part of the agreement, Hydro will take responsibility for all marketing and sales outside Venezuela. This will be handled by Hydro Aluminium Metal Products North America located in Louisville, Kentucky. Hydro will also share its technical and managerial competence with Pianmeca, and will appoint the operational manager in the company.