Norsk Hydro: Albras initiates 50 percent curtailment of aluminium production

Albras' Board of Directors has decided to curtail 50 percent of aluminium production at the Albras aluminium plant. The curtailment represents 230 000 tonnes on an annualized basis and is a result of the Alunorte alumina refinery not being able to supply more than 50 percent of Albras' alumina needs following Alunorte's forced production cut.

The curtailment decision was taken today, April 10, and the process to reduce production will be initiated shortly. Albras sources all its alumina from Alunorte.

Albras aims to restart production when Alunorte resumes full production.   

"Our main concern is our employees at Albras, as well as our customers who will be affected by this decision. We will maintain a dialogue with the unions to evaluate any effect on employees," says Chairman of Albras Einar Glomnes.

Albras is located in the municipality of Barcarena, in the state of Parà, in Brazil, next to the Alunorte alumina refinery, and has an annual capacity of 460 000 tonnes primary aluminium. Hydro owns 51 percent of Albras, the remaining 49 percent is owned by Nippon Amazon Aluminium Co. Ltd.

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Cautionary note
Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors.

No assurance can be given that such expectations will prove to have been correct.  Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.