Hydro covers anode requirements

Hydro is to invest about NOK 610 million in this capacity expansion. This will provide Hydro with the right to 110,000 tonnes of anodes per year, in addition to the about 90,000 tonnes that are currently supplied, when plant expansions have been completed during the second half of 2003. The investment figure includes interest during the development period and meets Hydro's requirements to rate of return.

Sunndal's remaining anode requirements will be covered through the planned upgrading of Årdal Carbon in Norway , which should be completed during the first half of 2004.

Hydro Aluminium Metal already holds a 21.2 per cent interest in the company Aluminium & Chemie Rotterdam B.V., Aluchemie, and is represented on the company's board of directors. Hydro's new rights are secured through so-called participation rights. The plant will be operated by Aluchemie, that will also be in charge for carrying out the investment project.

In June this year, potroom capacity at the metal plant at Sunndal was approved expanded by 238,800 tonnes to a total capacity of 328,800 tonnes per year. Construction work is well underway and the project is progressing according to plan. The first section will come on stream at the end of 2002 and New Sunndal will be fully operative in 2004.