Hydro Annual Report 2011b

F40
FINANCIAL STATEMENTS
Note 25 - Investments in associates
Specification of associates
Percentage
owned by
Hydro at
year end
Investments in and
advances to
associates
Hydro's current trade
receivable (payable),
net with associates
Amounts in NOK million, except ownership 2011 2011 2010 2011 2010
Alunorte ­ ­ 6 724 ­ (370)
Aluchemie 36.2 % 569 565 ­ ­
SKS Produksjon ­ ­ 338 ­ ­
NorSun 17.4 % ­ 120 ­ ­
Ascent Solar 20.5 % 29 135 ­ ­
Others 133 265 ­ ­
Total 732 8 148 ­ (370)
A description of significant associates' business, majority owners, and the nature of related party transactions with Hydro
including amounts if material follows:
Alumina do Norte do Brasil S.A. (Alunorte) is an alumina refinery located in Brazil. Before Hydro's acquisition of Vale
Aluminium on February 28, 2011, Hydro's ownership share was 34 percent. Vale S.A. owned 57 percent of the shares in
Alunorte increasing Hydro's ownership interest to 91 percent following the acquisition, see note 5 Acquisitions.
Aluminium & Chemie Rotterdam B.V. (Aluchemie) is an anode producer located in the Netherlands. Hydro owns 36.2
percent and has 21.2 percent of the voting rights. Other shareholders are Rio Tinto Alcan (53.3 percent) and Søral (10.5
percent). Hydro purchased anodes from Aluchemie amounting to NOK 824 million in 2011 and NOK 580 million in 2010
based on a cost plus formula. Sales of anode butts and coke from Hydro to Aluchemie amounted to NOK 120 million in 2011
and NOK 77 million in 2010. Hydro is committed to purchase a share of produced anodes based on it's ownership interest.
For certain product lines the right and obligation to purchase is higher, as agreed between the shareholders. Aluchemie is part
of Primary Metal.
SKS Produksjon AS (SKS Produksjon) is a power producer located in Northern Norway. SKS Produksjon AS was sold in
2011.
NorSun AS (NorSun) is produces mono crystalline wafers for the photovoltaic industry. Hydro's owns 17.4 percent of
NorSun. Significant influence is obtained through representation in the board of directors as agreed in the shareholders'
agreement. Other major shareholders are Scatec (19 percent) and Good Energies (22 percent). In 2011 and 2010 the
investment in NorSun was tested for impairment, resulting in an impairment loss of NOK 116 million in 2011 and 58 million
in 2010. NorSun is part of Other.
Ascent Solar Technologies Inc. (Ascent) develops thin-film photovoltaic modules and is located in Denver, Colorado in the
US. In 2011 Hydro agreed to divest its stake in Ascent for a cash consideration of about NOK 24 million. The transaction is
expected to be completed in the first quarter of 2012. Ascent is part of Other.
The income statement and balance sheet information included in the table below is based on reported figures from associates,
which could differ from Hydro's assessment of the underlying values.