Hydro looking at alternative sources of alumina to substitute reduced supply

As an update on the 50% production cut orders at Hydro’s Alunorte alumina refinery by Brazilian authorities and judiciary, Norsk Hydro says that it is looking at securing alternative sources of alumina to substitute the closed supply at its Brazilian plant on priority basis. Hydro’s Chief Executive Svein Richard Brandtzaeg told this to Reuters.

After the court orders Hydro declared force majeure with no time set to restart production. Alunorte produces 5.8 million metric tonnes of alumina per year, according to Norsk Hydro’s website.

In a telephone interview to Reuters, Brandtzaeg did not specify any date when full production would resume but, he said that the company is undergoing “very constructive” discussion with the Brazilian authorities. He confirmed that Alunorte had supplies that would last into April but they want to source extra volumes at a priority so that they can continue with steady service.

“We are looking at alternative sourcing on the international market,” he said. “Sourcing extra volumes is a key priority.”

A company statement on Thursday confirmed that 400 employees that work in its facilities in the northern state of Pará have been put on a compulsory 15-day leave beginning on April 2.  

Hydro’s shares closed down 1.6 per cent on Thursday amid the tensions regarding the closure and supply concerns.