Norsk Hydro: New Hydro CEO accelerating growth, value creation and sustainability to change the game for aluminium

Rhea-AI Summary

Norsk Hydro welcomed Eivind Kallevik as the new President and CEO, focusing on accelerating growth, value creation, and sustainability. The company's strategy aims at leading the green aluminium transition with a strong emphasis on low-carbon and recycled solutions. Hydro's 2030 strategy includes growth in recycling, extrusions, and energy solutions to support decarbonization. The company remains committed to safety, cost control, and profitability to achieve its long-term objectives amid challenging market conditions.

Positive

• Hydro's new CEO is focused on accelerating growth, value creation, and sustainability, strengthening the company's position in the green aluminium transition.
• The strategic direction towards 2030 emphasizes growth in recycling, extrusions, and energy solutions, aligning with the decarbonization roadmap.
• Hydro maintains a strong commitment to safety, employee wellbeing, cost control, and profitability to ensure long-term success and sustainability.

Negative

• Challenging market conditions pose a risk to Hydro's operations, despite the company's optimistic long-term outlook for increased demand for low-carbon aluminium.
• Continued efforts to strengthen cost-position and profitability are essential for Hydro to invest in growth, value creation, and sustainability, indicating potential financial pressures amid market challenges.

Eivind Kallevik assumed his position as Hydro’s new President and CEO on May 13, launching his agenda for accelerating Hydro’s strategy of pioneering the green aluminium transition, powered by renewable energy towards 2030.

“Hydro is the leading provider of low-carbon and recycled aluminium solutions. To take the next big step towards pioneering the green aluminium transition we are shifting gears to accelerate growth, value creation and sustainability,” says President and CEO, Eivind Kallevik.

Hydro is present throughout the full value chain of aluminium production and able to pull levers in every step, from when bauxite is mined until shipments of aluminium solutions leave Hydro’s facilities.

The strategic direction towards 2030 was launched at the company’s Capital Markets Day in late 2023. The Hydro 2030 strategy is in essence about growth, value creation and sustainability.

“It’s about accelerating growth in recycling, extrusions and in the energy solutions supporting our decarbonization roadmap. It’s about accelerating our ability to create value for all stakeholders, our employees, society, customers and investors. And it’s about accelerating our efforts within sustainability. Executing on our decarbonization roadmap while at the same time upping our game contributing to nature positive, as well as securing a just transition,” says Kallevik.

People are at the heart of Hydro’s operations, and Kallevik stresses the importance of continued efforts to support Hydro’s target of zero work related incidents – ensuring the safety and wellbeing of the company’s employees.

“People turn ambitions into results and I look forward to working closely together with our 32,000 colleagues across the globe to accelerate growth, enhance value creation and to pioneer sustainability,” says Kallevik.

Strong control of Hydro’s cost position and continuous improvement efforts will remain fundamental for the company going forward. Current weaker market conditions do not change Hydro’s long-term outlook for an overall increased aluminium demand. Towards 2030 demand for low-carbon aluminium is expected to increase faster than overall demand growth.

“We have ambitious targets for continued improvements towards 2030, as well as commercial objectives. We will not be able to invest in growth, value creation and sustainability unless we continuously strengthen our cost-position and profitability,” says Kallevik.

Kallevik also announced new members of Hydro’s Executive Leadership Team:

• Hanne Karine Simensen, former head of Hydro Aluminium Metal’s Commercial operations, is the new head of Aluminium Metal following Eivind Kallevik.
• Kari Ekelund Thørud, who is currently head of Ownership Governance in Hydro Energy, has been appointed as new head of Hydro Energy, as Arvid Moss has decided to step out of the role after 16 years in Hydro’s Executive Leadership Team. The change will be effective July 1, 2024. Moss will continue in the capacity as Chairman of the Board of Hydro Rein and have a position as special advisor to the CEO.
  
• Trond Olaf Christophersen, Executive Vice President for Corporate Development and interim Chief Financial Officer (CFO), will take on the role as CFO. The Corporate Development portfolio will continue to report to Trond Olaf Christophersen.

With the new Executive Leadership Team the share of women in Hydro’s top leadership is now 55 percent.

Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com

Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com

FAQ

Who is the new President and CEO of Norsk Hydro?

Eivind Kallevik assumed the position of President and CEO of Norsk Hydro on May 13.

What is Hydro's 2030 strategy focused on?

Hydro's 2030 strategy revolves around growth, value creation, and sustainability, with an emphasis on accelerating recycling, extrusions, and energy solutions for decarbonization.

What were the key announcements made by Eivind Kallevik regarding Hydro's executive leadership team?

Eivind Kallevik announced new appointments in Hydro's Executive Leadership Team, including Hanne Karine Simensen and Kari Ekelund Thørud, with changes effective from July 1, 2024.

How does Hydro plan to address the current market conditions?

Hydro remains focused on maintaining a strong control of its cost position and continuous improvement efforts, essential for navigating through challenging market conditions.

What is the importance of safety at Hydro according to Eivind Kallevik?

Eivind Kallevik emphasizes the significance of continued efforts to support Hydro's zero work-related incidents target, prioritizing the safety and wellbeing of the company's employees.