Hydro is increasing its basic fabricating price for all uncoated aluminium rolled products in the general engineering segment. The price increase will take immediate effect for all deliveries not already contractually agreed and for all alloys and quality grades.
Since the end of 2008, Hydro and the rest of the aluminium industry has had to accept substantial price reductions for standard aluminium rolled products.
In the first few months of this year, Hydro has been able to partially offset these reductions by making further cost savings in manufacturing. However, the most recent price developments no longer facilitate the sustainable supply of standard products - even if the total capacity utilization rate of the rolling mills would climb back closer to the level of previous years.
To cushion the impact of the reduced demand in 2009, Hydro introduced a series of personnel and organizational measures, ranging from reduced overtime to short working hours and extended works holidays, at its individual rolling mills. For the first time in many years, a summer shutdown is also being effected at German plants. In this way, equilibrium between order intake and current production capacity has been reached.
In a further step to ensure the medium-term sustainability of Hydro's supply to general engineering customers, Hydro is increasing its respective, basic fabricating price for all uncoated rolled products by EUR 20 per metric ton, effective immediately.