OSLO, NORWAY--(Marketwired - Jun 17, 2013) - Hydro has signed an agreement with Rio TintoAlcan to acquire its 50 percent ownership share in the Vigeland MetalRefinery AS and 100 percent ownership share in the AS Vigelands Brughydropower station, located in southern Norway.
Hydro held a 50-percent ownership share in Vigeland Metal Refinery AS priorto the transaction, and was the sole off-taker of its production of high-purityaluminium.
High purity aluminium is a vital part in semiconductors and severalelectronicapplications such as LCD screens for TVs, computers, cell phones andtablets.
"The metal refinery fits very well into the company's value added productstrategy", said Executive Vice President and Head of Primary Metal, HildeMereteAasheim.
Executive Vice President and Head of Energy and Corporate BusinessDevelopment,Arvid Moss, said the acquisition was a good example of cooperation acrossHydro's business areas.
"The Vigeland transaction represents a close match with Hydro's overallbusinessmodel as an integrated aluminium company, comprising an on-site hydropowerassetsupplying the refinery with electricity," he said.
The transaction will be notified to the Norwegian Competition Authority,andHydro will also apply to Norwegian authorities for an approval to acquirethehydropower assets in AS Vigelands Brug.
Located in Vennesla at the lower part of the Otra River, the Vigeland MetalRefinery, organized within Hydro's Primary Metal division, has an annualproduction capacity of 8,500 tonnes of high-purity (99.99-99.999%)aluminium.Located on site, the AS Vigelands Brug "run-on-the-river" power stationproducesabout 180 GWh in a normal year.
Originally established already in 1621 as a saw mill, production ofelectricalpower at Vigeland was commissioned in 1907 and aluminium production startedin1908, making it the longest-running aluminium plant still in operation inNorway.
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Source: Norsk Hydro via Thomson Reuters ONE[HUG#1709638]
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