Hydro to Build Plant in Mexico

Hydro to Build Plant in Mexico 


OSLO, Norway, June 22  /PRNewswire-FirstCall/ -- To better serve the growing
automotive markets, Norsk Hydro ASA has decided to construct a new aluminium
precision tubing plant in Mexico. The new capacity will secure Hydro's position
as the global market leader in aluminium precision tubing for the automotive
industry.

The Mexican market for Automotive Tubular Profiles and Precision Drawn Tubes,
used in automotive heat transfer applications is experiencing strong growth.

Hydro will build its new plant in Reynosa in North Mexico, with most top
customers located in the same region. This will allow lower transportation
costs, reductions in lead-time and inventory as well as improved service.

Total capital expenditure is expected to be approximately USD 30 million (NOK
220 million). Construction works will start in August this year, and the plant
is expected to start production late fall 2005. Hydro will establish Reynosa as
a state of the art manufacturing facility based on technology from its plants
in Tonder, Denmark, and Rockledge, USA. The Reynosa plant will create about 100
new jobs.

The Reynosa plant is the 2nd expansion of the Hydro Automotive Precision Tubing
activities in less than one year, as the new Greenfield operation in Suzhou,
China was approved last November.

Certain statements in this press release are or may constitute
"forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Statements that are not in the nature of
historical facts may be deemed to be forward-looking statements and may contain
identifying words such as "believes", "anticipates", "plans", "expects" and
similar expressions. These forward looking statements are based on Hydro's
current expectations, assumptions, estimates and projections about the company
and the industries in which it engages in business. All forward- looking
statements involve risks and uncertainties. For a detailed description of
factors that could cause Hydro's actual results to differ materially from those
expressed in or implied by such statements, please refer to its annual report
on Form 20-F for the year-ended December 31, 2002 and subsequent filings on
Form 6-K with the U.S. Securities and Exchange Commission. With respect to each
non-GAAP financial measure Hydro uses in connection with its financial
reporting and other public communications, Hydro provides a presentation of
what Hydro believes to be the most directly comparable GAAP financial measure
and a reconciliation between the non-GAAP and GAAP measures. This information
can be found in Hydro's earnings press releases, quarterly reports and other
written communications, all of which have been posted to Hydro's website
(http://www.hydro.com/).

   Contact   Idar Eikrem           Tor Steinum
   Telephone [phone]     ([phone]
   Cellular  ([phone]     ([phone]
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DATASOURCE: Norsk Hydro ASA



CONTACT: Idar Eikrem, [phone], or Cellular: [phone], or

, or Tor Steinum, [phone], or Cellular:

[phone], or , both of Norsk Hydro ASA



Web Site:  http://www.hydro.com/ 

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