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Hydro has decided to permanently close its Kurri Kurri aluminium plant in Australia. Production at the plant ceased in 2012.

After being in care and maintenance mode since 2012, the decision to permanently close the Kurri Kurri aluminium plant is allowing for remediation and redevelopment options for the site to progress.

The decision to cease production at the Kurri Kurri aluminium plant in 2012 was based on the overall market situation for aluminium, such as the continued weak macro-economic environment, with low metal prices, uncertain market outlook and strong Australian dollar (AUD) relative to the U.S. dollar (USD).

Hydro has been evaluating and preparing for a possible closure and has been working on plans for the future of the site, resulting in the decision to permanently close.

These plans will be further developed in consultation with the local community and other stakeholders.

"We are committed to maintaining our good relationship with stakeholders and the local community, and to understanding their views, values and concerns and to keeping them informed and involved throughout the phases of the project," says Hilde Merete Aasheim, executive vice president of Hydro's Primary Metal business area.

Costs of closure are expected to be offset by the sale of land and equipment.

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