The corporate assembly of Norsk Hydro has endorsed the recommendation of the company's board to cut back magnesium production by closing Hydro's Porsgrunn plant. The resolution was passed by 11 votes to 8.
Hydro is cutting back production because of fundamental changes in the global market for magnesium. Exports from China have made huge gains in world markets over a fairly short period of time, causing many western world magnesium producers to reduce or terminate their production.
Production in Porsgrunn will be wound down in the period between now and April of next year. The possibility is being looked into of continuing to operate the casthouse alone, by recovering recycled scrap metal and upgrading metal from other producers. Some 600 jobs will be directly affected by the Porsgrunn closure. The corporate assembly gave its unanimous consent to Hydro's plan to implement a set of personnel policy measures, designed to mitigate the adversity for those affected, and to the company's efforts to bring new enterprises to the Grenland district.
The corporate assembly has elected Håkan Lars Mogren to succeed Tom Wachtmeister on Hydro's board. Mogren (57) is Swedish and has a doctoral degree in biotechnology. He was previously head of the Marabou corporation and head of Astra AB, and is currently deputy chairman of the board of Astra Zeneca plc.
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