The FINANCIAL — Norsk Hydro ASA is considering curtailing production at its Kurri Kurri aluminium plant in Australia, according to Hydro.
A consultation process has started with the local employees."In response to the demanding situation, we are considering reducing aluminium production at Kurri Kurri. We will continue to stay in close dialog with all affected stakeholders, including employees, unions and the local community, throughout this process," says Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.
This is a response to the weak macro-economic environment, with low metal prices and uncertain market outlook. In addition, Kurri Kurri is suffering from a strong Australian dollar relative to the U.S. dollar.
In case of a curtailment at Kurri Kurri, Hydro is confident that customer commitments will be served through its global metal products supply system.
Kurri Kurri, fully owned by Hydro, has three production lines with a total annual production capacity of 180,000 metric tons. The plant, located near Newcastle in New South Wales, employs around 500.