Hydro Aluminum Continues North American Growth

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Norsk Hydro ASA (NYSE:NHY) (Oslo, Norway) has recently consolidated its North American secondary aluminum and extrusion operations under a new subsidiary name. Hydro Aluminum North America will be headquartered in Baltimore Maryland. Martin Carter, formerly senior vice president of corporate strategy for Norsk Hydro, will serve as president of the new subsidiary. This will allow Norsk Hydro to consolidate its growing North American presence under one name.

Norsk Hydro broke into the North American market with the acquisition of the Wells Aluminum Corporation in early 2000. Over the past two years the company has stepped up its secondary aluminum production with the construction of its first U.S. secondary aluminum smelter in Henderson, Kentucky. A second smelter is currently under construction in Commerce, Texas. Penta Engineering Incorporated (Charlotte, North Carolina) provided engineering services for both of the $37 million smelters. The Commerce smelter is expected to be operational by late November.

Plans to build a third secondary aluminum smelter in the Northeast U.S. have been cancelled or at least postponed as the company digests it latest acquisition, VAW. The acquisition of VAW makes Norsk Hydro one of the world's three largest aluminum manufacturing companies. According to Joseph Govreau, Manager of Metals and Minerals for Industrialinfo.com, "There are sixteen operational Hydro Aluminum plants in the U.S. including three secondary aluminum smelters. The remaining plants are aluminum extrusion and tube mills." Mr. Govreau goes on to state, "Currently the company is concentrating on the integration of VAW. Once this process is complete the company will re-evaluate the possibility of expanding its secondary aluminum capacity in the Northeast. Future options for expansion include expanding at an existing plant, such as the Ellenville, New York plant, or building a new grassroot secondary smelter if the market warrants it." The acquisition of VAW includes all VAW aluminum extrusion plants, including the plant in Ellenville, New York. The acquisition also includes a 20% ownership of Aluminerie Alouette Incorporated's primary aluminum smelter in Quebec. The Sept-Illes aluminum smelter has been evaluating a $780 million expansion for several years.

Industrialinfo.com is tracking 654 aluminum manufacturing plants in North America. This includes primary and secondary aluminum smelters, foundries, and extruders.