Modernization of Rafnes Chlorine Plant

Modernization of Rafnes Chlorine Plant 


OSLO, Norway, Feb. 4  /PRNewswire-FirstCall/ -- Hydro Polymers, the
petrochemical sector of Hydro, is planning a NOK 700 million (EUR 85 million)
conversion of its existing diaphragm chlorine plant at Rafnes, Norway, to
membrane technology.

The German company Uhde GmbH will have responsibility for the major part of the
conversion work, which will start immediately and should be completed during
the second half of 2006. When complete the plant will be identical to the new
chlorine production facility already under construction at Rafnes, which will
also utilize the latest generation membrane electrolysers and is scheduled to
come on stream later in 2005.

Together these two projects will increase Hydro Polymers' production capacity
significantly, doubling output to 260,000 tonnes of chlorine and 280,000 tonnes
of caustic soda.

Anders Hermansson, president of Hydro Polymers, said: "This investment will
secure Hydro Polymers' position as a sustainable low cost producer of chlorine
and caustic soda and will strengthen the Rafnes plant's strong competitive
position in VCM production.  The driving force behind the conversion to best
available membrane technology is environmental legislation, but in making the
conversion there will be significant product and operating benefits."

Membrane technology is more energy efficient and will lead to reduced CO2
emissions, cutting operating costs at the plant. In addition, the caustic
produced by the plant will be salt-free, producing a higher quality product for
customers.

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, 2003 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   Kristin Brobakke
            Telephone [phone]
            Cellular  ([phone]
            E-mail    

DATASOURCE: Norsk Hydro



CONTACT:  Kristin Brobakke, [phone], or Cell: [phone], or

 



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

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