HYDRO TO BUILD NEW CHLORINE PLANT IN NORWAY
18 March 2003 - Hydro Aluminium

Production capacity will be doubled to 260,000 tonnes. Hydro's petrochemical production at Rafnes is based on the import of considerable supplies of chlorine, an important raw material used in the production of PVC and the intermediate product VCM. The new plant will primarily eliminate the import requirement and ensure that the plant is self-supplied with chlorine.

'While our plans to divest the petrochemicals business remain unaffected, it is nevertheless important for us to develop and enhance the values inherent in the operation,' says Hydro's president and CEO Eivind Reiten.

'This investment will improve the competitiveness of the business. Furthermore, it is necessary for environmental reasons and will help to ensure the basis for future petrochemical activity in the area, regardless of the ownership constellation.'

The new plant will be based on the best available technology. Emissions, including CO2 , will remain at the same level as those from the current plant, despite the doubling of production. The production increase will not affect manning levels.

While the old plant utilizes diaphragm technology, the new one will be equipped with the latest generation membrane electrolysers. In addition to chlorine, the plant will produce 140,000 tonnes caustic soda annually.

'This investment will boost our competitiveness,' states president Anders Hermansson, who heads Hydro's petrochemicals business.

'We are currently dependent on purchasing chlorine from external sources and the market for chlorine in Europe has tightened considerably in recent years. Moreover, transporting large quantities of chlorine to Rafnes, in the form of the intermediate product EDC, is costly and not an attractive proposition in the long run.'

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