🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Norsk Hydro keeps some aluminium capacity offline due to weaker demand

Published 06/09/2022, 06:44
Updated 06/09/2022, 06:45
© Reuters. Norsk Hydro logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration
NHY
-
MAL
-

OSLO (Reuters) - Norwegian aluminium maker Norsk Hydro (OL:NHY) is keeping a small portion of its capacity in Norway offline after maintenance due to a drop in demand for the metal, a company spokesperson said on Tuesday.

Hydro has decided not to restart smelting pots at its Karmoey and Husnes plants, effectively curbing output by "a few tens of thousands of tonnes" out of the 1.1 million tonnes the company produces in Norway every year.

"The main reason is lower demand for aluminium," Hydro spokesperson Halvor Molland said.

"We're not actively shutting down but we're holding off on restarts after maintenance ... this is within what we would call normal variations," he said.

© Reuters. Norsk Hydro logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration

The soaring cost of electricity also had some impact on the decision, but was not the key reason as most of Hydro's power needs are covered from its own production as well as long-term contracts.

Norwegian newspaper Haugesunds Avis first reported the news on Tuesday.

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.