OSLO (dpa-AFX) - Norsk Hydro ASA (NHYDY.PK, NHYDY.PK, NHY) said it has decided to curtail one of three production lines at its Kurri Kurri aluminium plant in Australia. The company noted that the decision follows a consultation process with the local employees. According to the company, reducing production in Kurri Kurri will be done by curtailing potline 1, commissioned in 1969, representing an annual production of 60,000 metric tons. Norsk Hydro stated that 150 jobs will consequently become redundant. The cost of curtailing potline 1 is estimated at around $20 million. The process to curtail potline 1 will commence shortly, and the production line is expected to be fully curtailed in 6-8 weeks. The company noted that the decision is a response to the weak macro-economic environment, with low metal prices and uncertain market outlook. Besides, Kurri Kurri is suffering from a strong Australian dollar relative to the US dollar. Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area, commented, 'Kurri Kurri is in a tough spot, and we need to take swift actions to reduce losses. Operation under current conditions is not sustainable. Curtailing one line gives some relief to the situation, but we need to consider whether this is enough.'
Copyright RTT News/dpa-AFX
