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Norsk Hydro 

“Market Cap $10.17 B As of May 2014

At a Glance
  • Industry: Aluminum
  • Founded: 1905
  • Country: Norway
  • CEO: Svein Brandtzaeg
  • Website: www.hydro.com
  • Employees: 12,564
  • Sales: $11.03 B
  • Headquarters: Oslo
Forbes Lists

#1061 Global 2000

  • #881 in Sales
  • #1089 in Assets
  • #1062 in Market value
Profile

Norsk Hydro ASA manufactures aluminum products and produces renewable energy. It operates through six segments: Bauxite and Alumina, Primary Metal, Metal Markets, Rolled Products, Extruded Products and Energy. The Bauxite and Alumina segment include bauxite mining activities, production of alumina and related commercial activities. The Primary Metal segment focuses on the production, remelting and casting activities of aluminum and it products include extrusion ingots, foundry alloys and sheet ingot. The Metal Markets segment include sales and distribution activities that relating to products from its primary metal plants and operational responsibility, which are located in European markets and the United States. It also includes metal sourcing and trading activities, which secures a competitive supply of standard aluminum ingots for global production system and provides operational risk management through LME hedging activities. The Rolled Products segment consists of rolling mills, aluminum foil, strip, sheet, and lithographic plate for application in such sectors as packaging, automotive and transport industries, which are located in Europe. The Extruded Products segment consists of extrusion based business that are located in Europe and the Americas, which is focused on delivering solutions to the building and construction, transportation and engineered products industries. It products include aluminum building systems and precision tubing activities. The Energy segment is responsible for managing Hydro’s captive hydropower production, external power sourcing arrangements to the aluminum business and identifying and developing competitive energy solutions for Hydro worldwide. The company was founded by Kristian Birkeland, Sam Eyde and Marcus Wallenberg on December 2, 1905 and is headquartered in Oslo, Norway.

“A history of innovation

Hydro’s history is a journey of evolution, spanning more than a century, many industries and several continents.

Through it all, three characteristics have remained consistent: the spirit of entrepreneurship, a dedication to innovation and careful nurturing of a system of values. These traits have created the company that Hydro is today.

Beginnings

The journey began in 1903, when two Norwegians, entrepreneur Sam Eyde and professor and inventor Kristian Birkeland, created a method for using electricity to capture nitrogen from the atmosphere.

This was part of an industrial revolution, which ironically had stimulated global population growth, but had yet to create an adequate industrial farming system. Using Norway’s vast potential for hydroelectric power, nitrogen-based industrial fertilizers could be created relatively easily and at a reasonable cost.

Industrial giant

When Hydro was established in 1905, Norway had just won its sovereignty, but was nevertheless among the poorest countries in Europe.

Hydro’s share capital was mostly French, some Swedish and only to a small degree Norwegian. The Swedish industrialist and banker Marcus Wallenberg became the company’s first chairman of the board, a position he held for 37 years. Hydro quickly became one of Norway’s first industrial giants.

In the early years, Hydro’s industrial activities, as well as its power production, were concentrated in Telemark. But new challenges came in the form of the First World War, trade barriers and depressed markets. In the mid-1920s, it was also necessary for Hydro to let external technology replace its original – but no longer competitive – proprietary technology to produce the company’s key product, ammonium. The times of depression in the 1930s were equally turbulent for Hydro.

Wartime challenges

The Second World War brought new challenges to Hydro, as Norway was occupied by Germany and many Hydro facilities were damaged by Allied attacks. The most famous of these was the Telemark sabotage mission of 1943, closing down a German-operated “heavy water” facility in Hydro’s plant at Rjukan.

Post-war growth

Following the war, Hydro was free again and set off on an aggressive rebuilding program. The company evolved into a modern post-war industrial conglomerate, with new businesses in plastics, petroleum and light metals. In the 1970s, Hydro began to expand internationally.

In the 1980s and 1990s, Hydro further expanded its petroleum and aluminium activities. In 2004, the fertilizer and industrial gas businesses were established as an independent company, Yara International.

Bold steps

More change was yet to come. The circle closed in 2007, when Hydro took one of the boldest steps in its restructuring process, merging its oil and gas operations with Statoil.

What remained was the new Hydro: a global, integrated aluminium company.”

*Information from Forbes.com and Hydro.com

**Video published on YouTube by “NorskHydroASA

Industry:

Aluminum

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