Norsk Hydro ASA Business Report FY ended Dec. 2015

Financial Overview

(in million NOK)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 Rate of change (%) Factors
Net Sales 87,694 77,907 12.6 -
Net Income 2,333 1,228 90.0 1)
Net Sales by segment
-Primary Metal 5,373 6,397 (16.0) -
-Rolled Products 24,293 21,345 13.8 2)

1) Net Income
-In the fiscal year ended December 31, 2015, the Company’s net income was NOK 2,333 million, an increase of 90.0% over the previous year. Income had increased in several of the Company’s operating segments, including Bauxite & Alumina, Primary Metal, and Rolled Products.

2) Rolled Products Sales
-Sales for the Company’s Rolled Products operating segment increased by 13.8% to NOK 24,293 million in the fiscal year ended December 31, 2015. A main driver for the increase in sales of the segment is due to the growing trend of substituting steel for aluminum in European car production.


-The Company announced that it has finalized the sale of its aluminum rolling mill, Hydro Aluminum Slim S.p.A., in Cisterna di Latina, Italy. Starting January 1, 2016, the Slim plant in will be operated by Rolling Mills International GmbH. The Cisterna di Latina rolling mill produces aluminum rolled products, mainly standard strip and sheet, as well as plain foil. The rolling mill has around 430 employees and an annual production capacity of approximately 92,000 metric tons rolled products. (From a press release on December 17, 2015)

R&D Expenditure

(in million NOK)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 277 216 247

-The increase in research and development expenditures during the fiscal year ended December 31, 2015 was primarily due to preparation for the full-scale technology pilot at Karmoy, Norway; continued development of aluminum product solutions with improved physical properties and environmental benefits; and increased research and development activities in the Company’s Bauxite & Alumina segment.

R&D Facilities

-The Company’s primary research and development centers are in the following locations:

  • Ardal, Norway: Primary aluminum technology
  • Sunndal, Norway: Alloys and casting
  • Bonn, Germany: Rolled products
  • Barcarena, Brazil: Bauxite & Alumina

-Research and development activity for the Company’s Extruded Products segment are conducted by its 50/50 joint venture Sapa’s own research centers.

Capital Expenditure

(in million NOK)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Overall 5,254 3,294 2,867

Investment in Norway

-The Company’s plant in Karmoy recently invested over NOK 20 million to install new equipment for ultrasonic testing of foundry products. The ultrasonic testing equipment helps ensure quality control to satisfy automaker requirements. Leading automakers require ultrasonic testing for metal that is used for specific components, such as a vehicle’s suspension. The installation is expected to be completed in the second quarter of 2016. (From a press release on August 21, 2015)

Investment Outside Norway

-The Company announced that it laid the foundation stone for the project to build a new production line for automotive aluminum body sheet in Grevenbroich, Nordrhein-Westfalen, Germany. This EUR 130 million investment will be commissioned in the second half of 2016, boosting local production capacity for aluminum car body sheet from current levels of 50,000 tons to 200,000 tons per year. With the new production facility, the Company will create 25 additional jobs. In total, the Company is investing approximately EUR 230 million to expand and modernize its operations in Neuss and Grevenbroich. (From a press release on June 2, 2015)

-The Company is engaged in the modernization and expansion of hot rolling capacity by 150,000 tons per year at the Neuss-based Alunorf joint venture, through a EUR 80 million investment. (From a press release on June 2, 2015)