Hydro Aluminium AS is reviewing the future of three of its Norwegian smelters after announcing it will phase out its Soderberg technology because of new environmental emissions laws.

The aluminum producer said it planned to phase out Soderberg production at its 205,000-tonne-per-year Ardal and 80,000-tonne-per-year Hoyanger plants by 2006 and at its 270,000-tonne-per-year Karmoy smelter by 2009. Production already has been cut by 8,500 tonnes at Karmoy because of soaring electricity prices and a weak market for extrusion products.

"We are presently faced with the challenge that in the medium term some of our Soderberg plants will have to close because of the introduction of environmental regulations that limit emissions from the plants," a Hydro spokesman said. The company has commissioned an internal report that will explore replacements for the redundant capacity at the three plants.

"We are presently examining the options available to us when the plants' capacity is phased out in relation to investment opportunities, metal supply and manpower," the spokesman said, adding "We have invested 6 billion kroner ($867,500) in developing Sunndal to become our largest aluminum smelter and have already phased out its older Soderberg units in December 2002, two months ahead of schedule." Sunndal's new potlines, expected to reach full capacity of 330,000 tonnes per year in 2004, currently are around 60 percent complete.

Last week, Hydro Aluminium announced it was seeking 85 million kroner ($12.3 million) in cost savings from its Holmestrand rolling mill and Alucoat coating plant in Norway in response to high aluminum scrap prices and an 8-per-cent increase in the value of the kroner against the euro. The company also said it was cutting 60 jobs from its 40,000-tonne-per-year Grevenbroich rolling mill in Germany in an efficiency drive.