Norsk Hydro: Soral secures power for continued operation

Norsk Hydro: Soral secures power for continued operation 
OSLO, NORWAY -- (Marketwire) -- 10/29/12 --  Sor-Norge Aluminium
(Soral) primary aluminium plant in Norway has signed electricity
contracts with Agder Energi, Lyse, Statkraft and Hydro for the
long-term annual supply of up to 2.6 terawatt hours (TWh) of
electricity in Norway over an eight-year period, starting in 2013. 
"We are pleased that Soral has been able to secure power supply,
paving the way for continued operations at the plant. We have worked
hard to achieve this, and
we are happy that all pieces came together
in the end," says CEO Per Oyvind
Saevartveit at Soral. 
The combined contracts, together with necessary clarifications
concerning implementation on CO(2) compensation, will secure the basis
for continued commercial operations at the Soral aluminium plant at
Husnes, owned by Rio Tinto Alcan and Hydro. The plant's current power
supply contract expires in December 2012. 
"This is a milestone for Soral and for Hydro as part owner, and very
important
for our Norwegian aluminium operations," says Hydro
President and CEO Svein Richard Brandtzaeg. "It shows that Norwegian
industry and power producers jointly
can find solutions that ensure
that Norway keeps its position as a location for
aluminium production
with clean, renewable power. In our view, this is good for
Hydro, for
Norway as an industrial nation and for the global climate." 
Soral curtailed one of two potlines following the financial crisis in
2009, and is currently producing around 90 000 tonnes aluminium per
year. The plant's production capacity with both potlines in operation
is around 185 000 tonnes per
year. At full production the plant
employs around 340 people. Currently, 250 are
working at the plant. 
The renewed power sourcing will not lead to an immediate increase in
production
at Soral. 
"With renewed power sourcing, we will continue production with one
potline until
the owners and Board of Directors decides otherwise,"
says Saevartveit at Soral.
"The power contracts allow for an
increased production at a later stage, should
market conditions
improve. In the meantime, we will continue our efforts to further
reduce our cost base and improve efficiency," he says. 
Soral is owned by Rio Tinto Alcan (50.0%), Hydro (49.9
%) and others
(0.1%). 
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Source: Norsk Hydro via Thomson Reuters ONE 
[HUG#1652972] 
Investor contact
Contact
Stian Hasle
Cellular    +47 97736022
E-mail      Stian.Hasle@hydro.com 
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Halvor Molland
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E-mail      Halvor.Molland@hydro.com