Hydro cuts Brazil alumina output by 50% over gas shortage

Norwegian company Hydro said Tuesday that its Alunorte refinery in Brazil has cut production by 50 percent because of disruptions to gas supplies.

Hydro said the difficulties involved deliveries from Brazilian supplier CELBA and its ability to source gas for Alunorte on market terms compatible with its current financial situation.

Alunorte, in Barcarena in northern Brazil, is the largest alumina refinery outside China and has annual production capacity of 6.3 million tonnes. Alumina is the raw material used to smelt aluminium.

Hydro said Alunorte would begin returning to full production as soon as gas availability normalises. The company said the disruptions could affect its third-quarter results by $75 million to $100 million.

Hydro owns 62 percent of the refinery. Swiss-based commodities group Glencore owns 30 percent.