Norsk Hydro Expects Global Aluminum Demand Will Rise Over The Next Decade

Norsk Hydro, one of the world's largest aluminum producers expects global aluminum demand will rise over the next decade. It will increase capital expenditures by about 40% to equipment next year. Impact of the global economic downturn still affects automobile industry and housing construction industry, which indirectly results in the decline of aluminum prices in recent years. The company launched a series of cost-cutting plan, from which we can see Norsk Hydro still is cautiously optimistic to the future. Norsk Hydro expects aluminum demand to rise next year, so they enhance the capital expenditure to $0.7 billion. In a statement, the company said that global aluminum demand is expected to grow by 2% in 2013 except from China, and an increase of 2%-4% in 2014. The global aluminum industry is expected to occur long-term stable growth, annual growth rate of 4%~6% Next decade years. Svein Richard Brandtzaeg, chairman of Hydro, said the additional expenses will be used to update the main equipment for several individual smelters.