Hydro strengthens its response to the epidemic of Xinguan pneumonia

SMM, April 6, Hydro (Norsk Hydro) posted on its official website on April 2, local time, the enhanced response to the new crown pneumonia epidemic and updated the operation of each section. The following are SMM's translations and comments on important parts of Hydro's official statement.

"our top priority is to ensure the health and safety of our employees and the communities around the company," said Mr. CEO Hilde Merete Aasheim, chairman of the company. We will continue to strengthen emergency response plans and strong controls to ensure continuous production operations for the benefit of our employees, businesses, surrounding communities and even society. We will continue to make further responses as the epidemic develops. "

Current responses include:

1. Temporary reduction of production and layoffs;

2. Freeze 25% of the remaining capital expenditure in 2020;

3. Postponing the resumption of production at the Husnes electrolytic aluminum plant in Norway until the second half of this year (SMM note: Husnes aluminum plant has an annual production capacity of 95000 tons, extrusion aluminum production capacity of 120000 tons, the current production line shutdown transformation, originally scheduled to resume production in the first half of 2020);

4. Reduce company-related costs

5. The salary of the members of the company's board of directors is frozen and there will be no dividend in 2020;

6. The Board resolution amends the dividend recommendation of NOK 1.25 per share and authorizes the Board to make further decisions on the dividend per share;

Following the advice of local government departments, Hydro took a variety of measures to deal with the epidemic of Xinguan pneumonia, including rotating work, sub-regional isolation, travel restrictions, keeping personnel spacing and personal disinfection protection.

Hydro updated the production and operation of each section of the company:

Bauxite-alumina: basically normal operation, there is a high degree of market uncertainty.

Energy: basically normal operation, there is a high degree of market uncertainty.

Primary aluminium: most of it is in normal operation, Husnes resumed production as early as the third quarter of this year, Azuqueca recycled aluminum plant in Spain suspended production last week, and two other recycled aluminum plants in Luce in France and Clervaux in Germany suspended production two weeks ago. There is a high degree of market uncertainty in the section.

Calendering products: normal operation, but downstream customers have reduced production stop action, partly reflected in the automobile terminal section.

Extruded products: extruded material factories in several regions have reduced production capacity and increased production capacity. About 35 per cent of regional capacity is basically operating normally, 40 per cent is in the process of reducing production, and 25 per cent is closed or operating at a very low operating rate.

SMM will continue to follow up.