Hydro and Talum Enter Agreement

Hydro Aluminium has entered into a long-term purchase agreement with the Slovenian aluminium producer Talum for foundry alloy casthouse products. Talum will supply Hydro with an average of 70,000 tonnes of foundry alloy products per year over the next seven years. This new supply contract comes in addition to the ongoing agreement under which Hydro annually purchases approximately 50,000 tonnes of extrusion ingot from Talum. The new purchase agreement will start 1 January 2004 and run through 2010. Hydro and Talum have been cooperating closely since 1987, including Hydro's supply of alumina for Talum's primary aluminium production. Hydro Aluminium has developed an annual business volume of more than 3 million tonnes of aluminium casthouse products, this volume being based on approximately 1.4 million tonnes of equity primary aluminium production, a unique network of aluminium recycling and remelting facilities in most major metal markets, as well as third party supply contracts like the one Hydro has now further developed with Talum. This metal supplier concept is built on Hydro Aluminium's casting technology, operational know-how and its strong global market positions. This new agreement means a continuation of our good cooperation with Hydro Aluminium," says Danilo Toplek, President of Talum's Management Board. "We are pleased about the agreement and convinced we will be able to combine the strengths of the two companies in the best way." Helge Jansen, head of Hydro Aluminium's Foundry Alloy Business Unit in the Metal Product Sector, supports this view. "This additional capacity will help Hydro Aluminium support the growth strategy of our customers in Central, Eastern and Southern Europe. Talum is known for its top product quality and reliability, combined with a flexible customer approach. This fits in very well with our way of thinking."