In response to the economic slowdown, low metal prices and a weak market, Norsk Hydro has announced that it will stop one of its production lines at its facility located in Kurri Kurri in Australia.
ALUMINIUM: Hydro became owner of the Kurri Kurri aluminium smelter through the acquisition of VAW aluminium AG in 2002. (Photo: Halvor Molland)
The company has taken this decision in consultation with its employees. The company will stop production from potline 1 which was installed in 1969 and has a production capacity of 60,000 metric tons/year. The curtailing will result in the loss of around 150 jobs.
The curtailing of the production line, which will involve costs of around $20 million, will commence in the near future and is likely to be carried out over a period of 6-8 weeks.
According to the Executive Vice President of the Primary Metal Business of Hydro, Hilde Merete Aasheim, operating the plant under the current scenario was resulting in operational losses for the company and this step will only bring some relief to the situation. She also added that the company will consider other options that may reduce operational losses.
Kurri Kurri, which is fully owned by Hydro, has three production lines with a total capacity of 180,000 metric tons/year. The company also has a plant near NewCastle in South Wales which has 500 employees.
Source: http://www.hydro.com