Norsk Hydro to close Soederberg aluminium production line next year

Norwegian Norsk Hydro ASA Tuesday said it expects to close its Soederberg line in Aardal, Norway in the first half of 2007.

The company had been scheduled to close the Soederberg production line at its Aardal aluminium plant at the end of 2006. But Norway's Pollution Control Authority, or SFT, has granted the company an extension to this deadline.

The company now expects to close the Soederberg line by the end of June, saying the extra time will allow it to make the necessary changeover.

Hydro said the production line is to be closed because it no longer satisfies Norwegian environmental standards.

After the closing of the Soederberg line, Hydro will continue producing aluminium at Aardal's two other production lines, with output of around 180,000 tons per year.

Hydro said it has recently decided to invest an additional NOK200 million kroner ($1=NOK6.65) in the firm's research center in Aardal to expand development.