Hydro Consider Closing Porsgrunn Magnesium Casthouse

Fundamental changes in the global market for alloyed magnesium necessitate a further restructuring of Hydro's magnesium business. This means that Hydro is considering terminating operations at its casthouse in Porsgrunn. The matter is currently being discussed with the employees' representatives.

“Chinese magnesium producers are selling alloyed magnesium to the European market at very low prices. This is expected to lead to lower price levels in the long term, creating an extremely difficult competitive situation for the Porsgrunn casthouse,” says Dieter Braun, president of Hydro's Automotive business sector, whose responsibilities include Hydro Magnesium Norway and the Porsgrunn plant.

A final decision to close the plant will be taken when the situation has been discussed with the employees’ representatives. Some 60 people are currently employed in the casthouse.

Regardless of the outcome for the Porsgrunn casthouse, Hydro intends to maintain its position as the leading global player in the magnesium market, with the Porsgrunn Research Centre supporting the company’s drive to promote greater use of magnesium.