Norsk Hydro to Expand Asian Aluminium Sales by 50% in 2011

Norsk Hydro’s vice president Harald Odegaard said at press conference in Tokyo on Wednesday the firm expands the aluminium sales to 600,000 tonnes in Asia in 2011 compared with planned 400,000 tonnes in 2010. The firm increases the sales to 150,000 tonnes in Japan from just more than 100,000 tonnes in 2010. The firm tries to expand the sales mainly for automobile industry in Asia through the advantage of the global network.

Mr. Odegaard said the Asian sales gets larger and larger in recent years and Japan is the largest market for the company in Asia. The firm supplies billet for extrusion and alloys for castings in automotive applications including A356 grade. He said the firm tries to follow Japanese users shift the operation to Southeast Asian countries.

The firm also focuses on automobile production growing South Korea, Taiwan wit the production base, Southeast Asian countries and India and western Asian countries.

The firm has top 35% share in aluminium castings in European market. Mr. ?degaard said the firm targets top 3 in Asian market at first. The sales in Asia have increased from 230,000 tonne in 2006.

The firm expands the production capacity to expand the Asian sales when Qatalum in Qatar started the operation in end of 2009. The firm acquired remaining 15.1% share in Taiwanese remelter, Formosa Alloy Materials Company (Famco) in July to control 100% of Famco. The firm utilizes the network including primary aluminium plant, Kurri Kurri in Australia to follow growing demand in Asia.

Norsk Hydro has 2 million tonnes of annual output capacity for billet of extrusion. The firm has capacity to make 600,000 tonnes of alloy for castings, 450,000 tonnes for slab and 70,000 tonnes for wire rod.