Hydro Raises Improvement Ambition With Additional NOK 2.9 Bln By 2019-end

(RTTNews) - Norsk Hydro ASA (NHY, NHYDY.PK, NHYDY.PK) said, building on a strong track record of delivering on improvement goals, the company has now introduced a new improvement ambition, Better, which aims to deliver NOK 2.9 billion of added value throughout the value chain in the period from 2016 to 2019, with NOK 1.1 billion of these expected in 2016. The company said its ambition builds on the previous programs, and includes lifting production capacity in the Primary Metal plants through technological developments, high-grading Rolled Products portfolio towards higher margins, and further lifting production backed by robust operations in Bauxite & Alumina.

"Market conditions have deteriorated compared to a year ago, underlining the importance of Hydro's continuous improvement culture," said Hydro CEO Svein Richard Brandtzæg.

The company said its long-term sustaining capex guidance remains below depreciation at NOK 3.5-4.0 billion per year, adjusted somewhat up from the previous level of NOK 3.5 billion and reflecting long-term inflationary pressures and a portfolio update.