Hydro Annual Report 2011b

Build on the high performance of
our European operations
We intend to improve operational performance, and target further
business development, based on our existing platform of
technological strength and strong market positions in Europe. We
will continue to work closely with our customers to ensure top
product innovation and design as well as excellent service levels.
Going forward, we aim to capitalize on our strong building systems
brands – Wicona, Domal/Alumafel and Technal – each of
which represents distinct value propositions to customers.
Selective growth of our strong performers,
especially in emerging markets
We will continue to grow our high-performance businesses.
Entry into new markets will be a priority and we intend to be
recognized as an industry specialist in energy-neutral building
solutions. We will also prioritize investments designed to
ensure stable operations and good safety standards, and which
maintain the value of our assets.
Operations
The extrusion process involves pressing preheated metal (450-
500 degrees Celsius) under high pressure (1,600-6,500 tons)
through a die which forms the metal into the desired shape.
Dies come in thousands of shapes, sizes and levels of complexity.
Surface treatments such as anodizing, powder coating, lacquering
and various mechanical treatments, like grinding and
The extrusion process
The ingots are preheated, extruded through a die and hardened before surface treatment.
BusIness DesCrIptIon
Extruded Products
2011 targets
• Safe operations with a return to trend of continual reductions in
TRI rate
• Grow volumes and reinforce leading position in Europe
• Execute further rationalization in European operations
• Execute growth projects in emerging markets
2011 results
• TRI reduction lower than target despite high attention
• Increased overall volumes within a challenging market
environment
• Significant cost cutting measures implemented in southern
Europe and Scandinavia
• Preparation for ramp up of growth investments in China and
Brazil in place
2012 targets
• Safe operation with continued focus on TRI reduction
• Successful implementation of cost improvement program
• Improve overall cost effectiveness compared to 2011
• Further development of differentiation strategy and strengthen
basis for premium prices
• Capture growth opportunities, especially in emerging markets
Ambitions going forward
Our goal is to remain the clear performance leader in Europe’s
extrusion-based industries, including building systems, reinforcing
our leadership position through selective growth and further
development of new high-performing solutions. We focus on
innovation and technology to sharpen our competitive edge. We
are committed to safety and to eliminating serious accidents in our
operations. We will actively adjust capacity in markets with insufficient
demand. We intend to further expand in emerging markets to grow
our business and improve the profitability of our operations.
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