OSLO, Sept 4 (Reuters) - Norwegian aluminium producer Norsk Hydro plans to increase production at its primary metals smelter in Neuss in western Germany, after striking a power deal with Vattenfall and receiving compensation for carbon costs.
The firm said on Tuesday it aimed to raise ramp up output production at the plant to around 150,000 tonnes per year during the first half of 2013, from the current level of 50,000 tonnes.
The plant’s total production capacity is around 230,000 tonnes.
“Improved framework conditions, including expected CO2 compensation in Germany, are giving relief to this efficient smelter,” the company said on Tuesday.
Hydro said its power deal with Sweden’s Vattenfall totalled 2.2 terawatt hours (250 MW) annually over five years, being a combination of new and existing power arrangements. (Reporting by Henrik Stolen, writing by Victoria Klesty)