Our performance
2007 was a good year for Hydro, partly due to good markets, partly to good operations and the effects of restructuring
Aluminium Metal
2007 targets
- Metal repositioning – final investment decision on Qatalum
- 1,730,000 tonnes primary aluminium after closures
- Successful advancement on Alunorte phase 3 alumina expansion
2007 results
- Major repositioning program completed
- 1,742,000 tonnes primary aluminium production following completion of closure program
- Final investment decision on Qatalum taken
- Alunorte phase 3 expansion on schedule and on budget
2008 targets
- Successful advancement of Qatalum
- Alunorte phase 3 expansion complete
- Finalize agreement with Vale on new alumina refinery in Brazil
- Aluminium Metal Production System implemented in Norwegian smelters
Ambitions going forward
Our ambition is to reach 2 million tonnes of primary aluminium production per year by the end of 2011, the first year of full production from Qatalum. We plan to transfer project competence gained with Qatalum to new smelter projects. We aim to improve further our smelter cost position and to be ready to begin utilizing next-generation cell technology to improve our global competitive position and ambitious performance goals. Our goal is to increase our equity alumina production from 63 percent at the end of 2007 to 75 percent in 2011.
Aluminium Products
2007 targets
- Complete restructuring program defined in 2006
- Long-term portfolio defined
2007 results
- Automotive casting business divested
- Exited the magnesium business
- Several smaller divestments and closures
- Plant rationalizations and improvement programs executed
- Significant improvements in financial results
2008 targets
- Continued improvement in profitability for underperforming U.S. extrusion units and automotive structures
- Selected growth projects delivered in Extrusion Eurasia and Building Systems
Ambitions going forward
Our goal is to be the clear performance leader within the European extrusion and building system industries, reinforcing our leadership position through selective growth and further development of new high performing solutions. We aim to increase the returns of our rolled products business. We will focus on innovation and technology to sharpen our competitive edge.
Energy
2007 targets
- Move focus in Energy business from oil and gas to aluminium
- Foothold in solar energy industry
2007 results
- Energy business with sourcing focus in aluminium company
- Investments in Ascent Solar and establishment of HyCore
2008 targets
- Energy sourcing arrangements for primary aluminium growth
- Technology development and startup of commercial operations in solar business
Ambitions going forward
Our goal is to capatilize on our energy competence supporting the sourcing of power to our smelters on a global basis. We aim to develop our investments in solar power, building on our initial, promising investments within this emerging high-growth industry.
Viability performance
2007 targets
- No fatal accidents. Total recordable injuries per million hours down by 20 percent
- Effective restructuring carried out with respect to employees and their communities
2007 results
- Two fatal accidents. Total recordable injuries per million hours up from 4.0 to 4.1 percent
- Restructuring processes in Norway, USA and Canada, as well as the divestment of Automotive Castings, implemented in cooperation with employees and local communities
2008 targets
- No fatal accidents. Total recordable injuries per million hours downby 20 percent
- Effective restructuring carried out with respect to employees and their communities
- Complete our new climate strategy, including setting specific targets
Ambitions going forward
Our ambition is to have no serious injuries. We intend to be a preferred partner worldwide due to our responsible business operations. We have a long-term vision of reducing greenhouse gas emission.
