OSLO, Norway, Feb. 25, 2014 (GLOBE NEWSWIRE) -- Norsk Hydro ASA will invest in a new production line at its rolled products plant in Grevenbroich, Germany. The new line will increase annual capacity for aluminium car body sheet to 200,000 metric tons. "In the search for light-weighting vehicles and reducing CO2 emissions, automotive customers are looking for innovative solutions in aluminium. We are therefore increasing our production capacity of state-of-the-art automotive body sheet," says Executive Vice President Oliver Bell, head of Hydro's Rolled Products business area. The new line, which has an estimated cost of EUR 130 million, is following a recent decision to expand the annual continuous heat treatment capacity from 20,000 to 50,000 metric tons. The expansion will include annealing and surface treatment lines, part of a flexible plant concept and innovative production processes at Hydro's Grevenbroich plant. Combining newly developed high performance aluminium alloys and state-of-the-art surface qualities, yields unmatched forming properties. Aluminium body sheet from the new production line will be used in manufacturing automotive components, including car hoods, doors, tailgates and side panels. "With this substantial investment, we are pursuing our strategy towards the growth market within automotive, while also expanding our product portfolio. We are reinforcing our position in the European automotive market, and as the largest producer of flat-rolled products in Europe, strengthening our Grevenbroich plant in Germany as an industry location for advanced rolled products", says Bell. The new production line will be completed in the second half of 2016. The cost of the investment will be distributed in the period 2014-2016, and does not change Hydro's earlier capex guidance for 2014.
Investor contact Contact Pål Kildemo Cellular +47 97096711 E-mail Pal.Kildemo@hydro.com Press contact Contact Halvor Molland Cellular +47 92979797 E-mail Halvor.Molland@hydro.com
Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management's plans, objectives and strategies for Hydro, such as planned expansions, investments 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, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar statements. 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 aluminium business; 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.