At our primary metal plant in Neuss, Germany, production capacity was temporarily reduced in 2009 from 235,000 metric tons to 50,000 mt, affecting 700 employees who have different levels of reduced working hours. Mothballing the plant's primary production is undecided, while casthouse production will continue. Part-owned Søral in Husnes, Norway, temporarily stopped half its production in 2009. The number of temporarily laid-off employees at Søral varied between 85 in 2009 and zero in the second half of 2010, with employees utilized as holiday relief and in investment projects. Entering 2011, Søral had 50 employees on reduced working hours. The oldest production line in Sunndal, Norway, was temporarily closed down in May 2009. Upon request from the main local union and in agreement with the local Labor and Welfare Organization (NAV), it was decided to introduce a system of rolling temporary layoffs to minimize the strain on each individual. Instead of temporarily laying off 160 employees for a longer period, all employees in the affected organization are included in a scheme of five-week layoffs.
We have decided to phase out our extrusion plant at Karmøy in 2012 as part of our work to restructure the production of aluminum profiles in Norway. This will directly affect 94 employees at Karmøy. The entire production and about 40 of the positions will be transferred to Magnor and Raufoss, strengthening operations at the two sites. Overall, our Norwegian extrusion business has 380 employees. The planned recycling center at Karmøy, with initial annual capacity of 35,000 mt, will have about 40 employees. The final decision regarding construction of the facility is expected in the spring of 2011. The new facility should be operative from the summer of 2012.
Hydro divested its share in the minority-owned alumina refinery Alpart in Jamaica in November 2011. The refinery had been temporarily closed since June 2009.
All manning reductions have been communicated in advance to union or employee representatives and have followed the layoff requirements specified in relevant collective bargaining agreements and legislation. All layoffs have been handled fairly, objectively and in a manner that reduces the risk of discrimination as it pertains to age, gender, race and veteran status, while preserving the competence needed. Different means have been used to reduce the impact on employees and local communities concerned.
In June 2010 Hydro aqcuired the Spain-based company Edinco, which includes an anodizing and painting line for extruded products. The plant has about 65 employees.
After a difficult period for our extrusion business in Tønder, Denmark, with significant layoffs, the plant increased slightly its number of employees in 2010. Close cooperation between management and employee representatives have been key during the process.
Our rolled products business sector, with about 3,900 employees, has experienced several challenging years. The optimism is now growing after a financially sound 2010, and the rolled products business has emerged from the financial downturn with a more robust structure.
