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Hydro puts off restart of idled Sunndal capacity

Thursday, Nov 10, 2011
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  Norwegian aluminium producer Norsk Hydro said on Wednesday it would not restart currently idled capacity at its Sunndal primary aluminium smelter in Norway until market conditions pick up.

 
 
The company's Sunndal 3 production line was idled in early 2009 in response to weak demand.
 
 
"We announced in April the restart of the first 15,000 tpy of the curtailed 100,000 line at Sunndal, Norway. The ambition was to restart the full line by the end of 2011, on condition of satisfactory market conditions," a spokesman said.
 
 
"Based on the current situation and market visibility, we have not taken the decision to continue the restart of the remaining 85,000 tpy capacity. We will review this when market conditions improve," he added.
 
 
Last month the company warned that uncertain economic conditions could soften demand for aluminium.
 
 
Sunndal, located in western Norway, has a total annual production capacity of more than 400,000 tonnes.
 
 
The London Metal Exchange (LME) three-months aluminium price was last indicated at $2,121 a tonne, down about one quarter from levels of $2,800 a tonne seen in early May.

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