Hydro postpones restart of Husnes aluminium plant due to coronavirus

Hydro has postponed the restart of 95, 000 tonnes capacity at the Husnes aluminium plant in Norway. The ramp-up, which was planned to start in the first half of 2020, is now postponed to the third quarter of 2020 at the earliest.

The company has also decided to freeze around 25 percent of remaining capital expenditure in 2020 by NOK 2 billion. Hydro has reduced cost across the company, including forced vacations, delaying projects, and temporary layoffs.

President and CEO Hilde Merete Aasheim said: “With forceful mitigating actions and contingency plans across the company, we will continue operations to the extent possible, keeping the wheels turning, to the benefit of our people, our business, local communities and society at large.”

“We will continuously evaluate further measures as the situation develops,” Aasheim said.

Current mitigating actions include:

• Temporary curtailments and temporary lay-offs
• Hydro freezes 25% of remaining 2020 capex
• Postponed Husnes aluminium plant restart
• Cost cuts and additional cost discipline across the company
• Corporate Management Board salary freeze and no bonus for 2020
• Board resolution to amend dividend proposal of NOK 1.25 per share and instead propose that Board is authorized to resolve distribution of dividend at later stage if conditions allow for it

“While our most immediate priority is protecting people and business here and now, it is also important to think ahead. We have set a clear direction for Hydro to lift profitability and drive sustainability, and we need to prepare for returning to normal operations,” Aasheim said.

“By taking firm actions and adapting to the changing demand situation, we are positioned for a fast return to normal as soon as the situation calls for it. I’m pleased by the agility and commitment of our people – to Hydro, to our plants and to our local communities.”