
Hydro will present its overall strategic direction and performance, including an update on the situation at the Alunorte alumina refinery and details on the market outlook for 2019 and the longer term at the Capital Markets Day 2018.
Hydro said in the short-term it is working hard to resume full operations at Alunorte, following nine months of running at 50 percent production.
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“We are aiming to establish a common platform with authorities and the court system to have an aligned way forward towards full production, utilizing the best available technology. We have what it takes: the right people, the right technology and the right spirit,” President and CEO Svein Richard Brandtzæg said.
Hydro expects global demand for primary aluminium to grow by 2-3% in 2019, with a continued deficit in the global primary market. It expects global aluminium demand to grow by 2-3% per year over the next 10 years, with semis at 3% and recycling at 3-4% per year over the same period.
“We see many examples of strong performance throughout the company, such as the Karmøy technology pilot in Norway, the new automotive line in Germany and the continuous improvements in the Extruded Solutions business area. The integration of Extruded Solutions is on track to deliver NOK 200 million in synergies, with NOK 100 million realized so far in 2018. Based on the industry’s most skilled and dedicated workforce and our industry-leading positions in innovation and sustainability, our long-term outlook remains positive,” Brandtzæg said.
Hydro said due to the Brazil-situation, the company will not be able to deliver on its Better program with improvements of a total NOK 3.0 billion over a four-year period until end-2019.
“We are very disappointed with not being able to further improve our recordable injuries rate and are devastated of the recent fatality we experienced in Hungary, and are implementing company-wide actions focusing on additional competence and training,” Brandtzæg said.
Total capital expenditure is estimated at average NOK 6.5-7.0 billion during 2018-21, including investments to improve robustness at Alunorte. The total capital expenditure estimate for 2019 is NOK 10-10.5 billion.
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