Hydro Aluminium Structures to raise production capacity in Europe

The board of directors of Norsk Hydro, the Norwegian oil and energy, light metals and plant nutrition group, has approved an investment in new production lines for aluminium bumper beams and crash boxes at plants in France, Norway and Sweden. The investment is due to strong growth in the market for aluminium-made automotive components, and bumper beams are one of the products showing the largest growth.

The investment of approximately NOK 500 million (USD 56 million) covers the installation of three production lines for bumper beams - two at the Raufoss, Norway, plant, and the other at the site in Louviers, France - and four lines for crash boxes. All four crash box lines will be installed at the company’s plant in Skultuna, Sweden. The installation work will be carried out in the period from 2000 to 2003. Part of the investment sum will also be used to expand the company’s assembly center in Wackersdorf, Germany. This investment in new production lines will to a large degree lay down the industrial structure in Europe for many years down the road for the automotive components division Hydro Automotive Structures.

Hydro Automotive Structures is a leading supplier of aluminium to the automotive industry and in terms of expertise is a global leader within the high-volume production of formed profiles for cars. The automotive industry has expressed its desire to have suppliers with such competence.

"Hydro Automotive Structures is making a real breakthrough with its new crash box concept," says division president Arvid Moss. "More customers are asking for crash management systems, which consist of bumper beams and crash boxes. Our production of crash boxes will increase from 300,000 units this year to more than 5 million units in 2003-2004. Production of bumpers beams will more than double from today’s 3.3 mill. per year."

This development is based on long experience within crash management and is a natural step in the reduction of car damage in collisions. Optimized solutions for individual car models in advanced alloys contribute to good crash performance and light weight.

This year, the division will supply about two-thirds of its bumper beams to BMW and
Audi/Volkswagen. The new, large orders are mainly from prestigious car makers like Daimler Chrysler, Renault, Nissan, Ford and General Motors, and will nearly double the company’s product area sales by 2003, compared to today.

Hydro Automotive Structures has eight production sites in seven countries, including the United States, and is part of Norsk Hydro, Norway’s largest industrial company. Hydro’s three main business areas are Oil and Energy, Light Metals, and Agri.