Slowdown signs - Norske Hydro to cut aluminum output

Norske Hydro has announced that it is considering making further production cuts in its extruded aluminum automotive components and systems due to General Motors and Chrysler suspending vehicle production at most of their assembly plants in North America. GM recently announced that it would idle 13 of its assembly plants in the United States and Mexico for up to nine additional weeks this summer, starting in May 2009. Chrysler said that it would suspend production indefinitely at all its US and Canada based plants. Hydro's automotive structures plant in Michigan is a Tier 1 supplier, delivering aluminum bumper beams for assembly in vehicles manufactured by General Motors. Consequently, GM's decision to stop production will have a direct impact on the Holland plant, which has about one third of its business with the company. Mr Salvador Biosca, who is responsible for Hydro's automotive business, said that "The production volumes at our plants in North America are already reduced, but we cannot rule out further reductions as result of these stoppages." Hydro announced on April 1st 2009 that it would be closing its Adrian precision tubing plant by the end of this year. Hydro has already begun the process of moving the production from the Adrian plant to sister sites in Rockledge. source：www.yourindustrynews.com