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Hydro Increases Improvement Ambition

In the autumn of 2009, Hydro launched a cost improvement program in order to reduce operating costs by USD 100 per tonne of primary aluminium produced by the end of 2011, compared to the 2009 level. The program is on schedule. The autumn 2009 program to reduce costs by USD 100 per tonne has been focusing on operational improvements, where a more stable operation of aluminium production means lower production costs. The existing improvement program will now be extended, and Primary Metal will improve efficiency, implement improvements and reduce costs in areas such as purchasing, logistics, technology, manning and organization. In addition, the aim is to obtain a further improvement from margins on metal products from the smelter casthouses – in total, USD 300 per tonne in improvements when all measures are identified and implemented. The improvement program will focus on costs we are able to influence, mainly so-called conversion costs, in Hydro’s wholly owned aluminium smelters. The improvements do not include the effect of somewhat higher energy costs in coming years, or fluctuations in raw material prices and other input factors. (09/2010)  

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