The European NPK market has suffered low profitability during the last years due to structural problems and high production costs. Norsk Hydro has taken steps to improve the structure in the oversupplied European market in order to contribute to a better market balance.
Hydro has announced its intentions to shut down production capacity of about 500,000 tons NPK in France. The plants to be closed are Hydro’s facilities in Aunay (Hurel Arc), La Pallice (Socofer) and Tarnos (Socadour).
The above measures will imply a manning reduction of about 170. Closing costs of NOK 110 million and write-offs of NOK 60 million totalling NOK 170 million will be charged to Hydro’s result in the 2nd quarter this year. All plants are expected to cease production before the end of 2000.
The above measures and costs come in addition to previously announced restructuring and follow Hydro’s earlier steps towards restoring the market balance for nitrates in Europe through the closure of production in Immingham, UK, Landskrona, Sweden and Montoir, France