Norsk Hydro’s CEO Svein Richard Brandtzag said to a reporter of Japan Metal Bulletin the firm tries to improve productivity of the alumina refinery, Alunorte of Brazil and realize operation rate more than name plate capacity. He said the firm also improves productivity of each operation from smelting to extrusion and rolling mill.
Mr. Brandtzag said the firm tries to realize US$ 300 per tonne of production cost reduction compared with 2009 level. He said the across the board actions include closure of extrusion plant in southern Europe and Australian Kurri Kurri plant while the firm improves efficiency in the rolling operation and bauxite and alumina business. Mr. Brandtzag said the firm closed total annual 500,000 tonnes of aluminium smelting capacity in Norway in 2008 and 2009. He said the firm always reviews breakeven point of each smelter but the firm has no additional plan to close smelter after Kurri Kurri plant. Mr. Brandtzag said the firm tries to improve operation of Alunorte targeting more than 6 million tonnes per year. He said the firm added original production system to Alunorte after the firm acquired the interest from Vale of Brazil. He said the aluminium smelter, Albras keeps full capacity operation while the smelter tries to reduce the production cost through cooperation with Nippon Amazon Aluminium, which is investment company to Albras by Japanese partners. Mr. Brandtzag said the aluminium smelting joint venture, Qatalum of Qatar keeps full capacity operation. He said the second phase expansion schedule is to be decided while the firm already secured the land. Mr. Brandtzag said world aluminium demand will increase by 5% to 47.1 million tonnes in 2012 from 2011. He said the world demand grows at slow pace and Chinese demand is slowing. He said aluminium market price is pressured by oversupply of ingot and slower economy.