Hydro Aluminum Investment in North American Secondary Aluminum Sector to exceed $100 million

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The following is an advisory by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). Despite a somewhat depressed secondary aluminum market, Hydro Aluminum Metal Products North America (Louisville, Ky) a subsidiary of Norsk Hydro ASA (NYSE:NHY) (Oslo, Norway) will spend over $100 million on new facilities over a five year period. As part of a continuing strategy to expand its international network of secondary aluminum smelters, which includes five in Europe, Hydro Aluminum has started construction of its second grassroot North American secondary aluminum smelter to be located in Commerce, Texas. The $37 million plant is scheduled to start operations late this year. The plant will produce 90,000 metric tons a year of aluminum billet from recycled scrap for sale to extruders and other aluminum end users.

2001 was an active year for Hydro, not only did they open their first grassroot secondary aluminum smelter in Henderson, Kentucky, they also acquired Wells Aluminum and its associated secondary smelter in Monett, Missouri. This will give the company three secondary aluminum smelters with a total capacity of 260,000 metric tons starting in 2003 when the Commerce plant will be in full operation. The company has plans on the drawing board for a fourth smelter to supply the northeastern US, once market conditions necessitate the demand. As competitors have downsized recently, Hydro Aluminum has gone against the grain utilizing its industry experience and energy efficient technology to become a world leader in the aluminum billet market.

Norsk Hydro is an industrial leader based in Norway and focused on world growth of oil and gas resources, light metals, and agricultural.