OSLO, Norway, Dec. 3, 2002 (PRIMEZONE) -- Norsk Hydro (NYSE:NHY) today announced that the production of primary aluminium at New Sunndal is now on stream and capacity is gradually being increased to the planned 76,000 tonnes per year for the first expansion phase.
At a press conference in connection with the official opening of New Sunndal, the president of Hydro Aluminium Primary Metal, Truls Gautesen, said that the second expansion phase will come on stream during the second quarter of 2003, and all the new facilities will be completed during the third quarter of 2003, about 3 months ahead of schedule. The first cells in the new potroom were started up three weeks before schedule.
So far, about 60 per cent of New Sunndal has been completed. Calculations show that, after completion of the first expansion phase, the planned cost level for the project will be below budget. The total investment decision in 2001 was estimated to be NOK 5.6 billion.
Hydro's proprietary process technology, HAL250, is being utilized in New Sunndal, and 340 cells of this type are to be installed. Based on the amperage of 250 kA, the capacity of the new potlines will be 238,000 tonnes per year. HAL250 has now been approved for 275 kA. New Sunndal have been dimensioned for such an amperage increase and the plan is to effectuate this increase from 2007. This will increase capacity by 22,000 tonnes per year with no new investments.
The final decision to build New Sunndal was made in June 2001 and the first phase of the new facility came on stream only 16 months later. The existing production facilities at HA Sunndal have been fully operative the whole time.
"The New Sunndal development will contribute towards improving the cost position of Hydro Aluminium Primary Metal and will, in addition, strengthen our possibility to supply the European market with primary aluminium products," said Truls Gautesen. "New Sunndal will be a very efficient metal plant, our Hydro technology providing unique environmental solutions for improving the working environment and reducing external emissions/discharges and noise."
The official opening of the first expansion phase at HA Sunndal is to be carried out by the Prime Minister of Norway, Kjell Magne Bondevik, at 1600 hours today, 3 December 2002.
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.