Norway's Hydro will cut aluminum production in Slovakia because of electricity costs

The Norwegian company said on Thursday that Norway Hydro's majority-owned aluminum plant in Slovakia would cut production to about 60 per cent of capacity in response to high electricity costs.

Electricity and natural gas costs across Europe have soared this year, reducing production in smelters, chemical plants and other affected industries.

The Slovak plant, which is 55.3 per cent owned by Hydro, has announced that it will cut capacity to 80 per cent in 2019 and says the new cut to 60 per cent corresponds to a reduction of 35000 tonnes of aluminium a year. It does not say when it will take effect.

"Slovakia will continue to monitor the situation closely in the coming weeks and months," Hydro said in a statement.

In Norway, Hydro has not announced any other cuts, and its own hydropower capacity and details of its long-term renewable energy supply insulate it from price fluctuations.

Since energy is one of the biggest costs in energy-intensive industries, metal producers and other industries have turned to the EU for help, saying record prices have hit their competitiveness and could prompt European companies to relocate.

On Wednesday, Alcoa Corp, an American aluminium maker, announced an agreement with workers to stop production at its San Ciprian aluminum smelter in Spain for two years, citing high energy costs.