“Hydro's goal is to be climate-neutral by 2020, and is working along three axes in order to achieve this…” Halvor Molland, Vice President, Communication, Norsk Hydro ASA

AlCircle had the opportunity to have a conversation with Mr. Halvor Molland,Vice President, Communication and a spokesperson for Norsk Hydro ASA, a global supplier of aluminium and aluminium products based in Norway.

An experienced journalist and a process engineer in Oil and gas business, Mr. Molland has several years of hands on experience in the field of International Corporate communication. He also represented Hydro in the International Aluminium Institute and European Aluminium Association (EAA). He shared with AlCircle the climate neutrality goals for Hydro and his outlook for the aluminium industry in general and Hydro in particular.

AlCircle: Could you tell us in brief about the products and services of Hydro?

Mr. Molland: Hydro is a global aluminium company with production, sales and trading activities throughout the value chain, from bauxite, alumina and energy generation to the production of primary aluminium and rolled products as well as recycling. It is presently the number one aluminium foil producer in Europe. The company is based in Norway and has about 13,000 employees involved in activities in more than 50 countries on all continents.

AlCircle: Could you tell us in brief how Hydro is working on realizing its goal is to be climate-neutral by 2020?

Mr. Molland: Hydro's goal is to be climate-neutral by 2020, and is working along three axes in order to achieve this. We expect to reduce the carbon footprint from aluminium in the production phase, lift the climate benefit of aluminium in its use phase, and not the least; we expect to expand our efforts in recycling to give new life to used products after its normal life-cycle.

The power source Hydro bases its production on, primarily hydro power, is a major part of this strategy. Aluminium that is produced using coal-based power emits about five times as much CO2 as aluminium based on renewable sources. Benefits of aluminium in the use phase are also included in accounting of Hydro’s climate footprint.

In the production phase, aluminium is a part of the climate problem regardless of how it is produced. In the use phase, however, aluminium goes from generating emissions to reducing emissions. For example, aluminium makes it possible to build lighter cars that, in turn offer better fuel and energy efficiency and emit much lesser CO2.

Hydro also expects to increase the amount of metal recycled to reach the goal. Aluminium can be recycled again and again, using just 5 percent of the energy required to produce the metal the first time around. Norwegians are world champions in returning cans for recycling, and close to half a billion beer and soda cans are expected to be collected and recycled this year. Now the cans will be recycled at Hydro's recycling plant in Holmestrand, Norway by Norsk Resirk. The agreement means a much shorter and more environmentally friendly transport distance for more than 6,200 metric tons of aluminium annually.

AlCircle: What is your view on the present recessionary condition in the aluminium industry and how is it affecting you as a producer of both primary and downstream aluminium?

Mr. Molland: Following the financial crisis, we experienced a situation of supply outweighing demand for primary aluminium, and a build-up of large inventories, which subsequently has had a negative effect on prices and the earnings of primary aluminium producers. Hydro, however, expects a balanced market going forward and there is a possibility of modest inventory decline of primary aluminium. Along with limited net supply growth expected over the next year, this could affect the primary aluminium producers positively, but there are of course many uncertainties. On the downstream side, we see automotive and construction indicators are picking up in the US, but there is still a mixed situation in the Euro zone.

AlCircle: When do you think the turnaround in the market is likely to happen?

Mr. Molland: We believe there is a healthy growth in aluminium demand, with the demand for semis having 4-6 % annual growth going forward. The market turnaround is among other things, dependent on macroeconomic factors, which are harder to predict.

AlCircle: Which geographic regions or countries do you think would assist in overcoming the current recessionary trend?

Mr. Molland: We see that US is gaining positive momentum, while the Euro zone is out of recession. China is stabilizing at 7-8% GDP growth, while we see a lower trend in the other BRICS countries and growth is softening in emerging economies.

AlCircle: Which industrial sector (automotive, construction, transport, packaging electrical etc.) do you think has the potential to boost the demand for aluminium?

Mr. Molland: If you look at the global trends, transport and construction has a great potential for further utilizing the benefits of aluminium: Aluminium is light weight, anti-corrosive, formable and fully recyclable and it can be best alternative for steel in both these sectors. Major automakers are resorting to aluminium for light weighting and enhanced fuel efficiency and this is expected to boost the demand for aluminium.

AlCircle: As E-Commerce has caught on in a big way in the consumer sector; do you think e-commerce model can work well in the aluminium sector?

Mr. Molland: Hydro has for many years offered our customers an e-portal solution. The feedback is very good and the customers appreciate this way of interaction, in addition to the human interface aspect. Hydro is also offering an extensive technical support for our customers, giving access to our highly qualified R&D and service personnel that can support and develop tailor made solutions for customers. I think, E-Commerce can be an additional avenue to reach out to the market side by side the face to face transaction.

AlCircle: Do you think that as an online media Alcircle has an advantage over visual or print media in promoting your company products and services?

Mr. Molland: Due to the fast growing internet sector, online media is penetrating deeper into the global population. It has a wider reach and is a faster medium for communication. In today’s world, I believe online and print media goes hand in hand complementing each other. So, one cannot be substituted for the other as far as product promotion is concerned.

Disclaimer: “The information presented herein is neither intended nor implied to be a substitute for professional advice. The views and opinions shared in the interview section of www.alcircle.com are unique to the interviewees and do not necessarily reflect the viewpoint of www.alcircle.com.”