The Supervisory Board of Hydro Aluminium Deutschland has approved the closure of the aluminium plant in Stade, Germany, due to the strong increase in power prices that makes continuous operations in Stade unsustainable.
The preparations to close the plant will start this fall. The ambition is to close the plant as soon as possible, at the latest by the end of 2006. This confirms the recommendation by the Board of Directors of Norsk Hydro ASA, given on June 16.
In the Supervisory Board meeting, the management declared to handle any redundancies socially reconcilable.
Executive Vice President Jon-Harald Nilsen, head of Hydro’s aluminium business, stated that he would propose a revision of the closedown to Norsk Hydro´s Board of Directors, should the economical frame conditions for operating the Stade plant experience a material change.
Hydro Aluminium Stade has 420 employees. Hydro will initiate programs to support creation of new employment. A social plan for the workforce will now be negotiated.
With a capacity of 71,000 tonnes per year, Stade is Germany’s smallest primary aluminium producer, based on a less efficient and labour-intensive technology, which makes it more exposed to the strong increase in power prices than other smelters.
Hydro will continue to serve its customers in Germany and other countries.
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