Norsk declares force majeure for Qatalum deliveries
Oslo, August 15, 2010
Norwegian aluminium producer Norsk Hydro said it had declared force majeure for aluminium deliveries from its Qatalum smelter in Qatar after a power failure delayed the plant's ramp-up schedule.
Declaring force majeure frees companies from contractual obligations due to events beyond their control.
Qatalum, a 50/50 venture between Qatar Petroleum and the Norwegian aluminium firm, had a sudden shutdown of production last week due to a power outage.
'In certain markets affected by the Qatalum stoppage, we unfortunately have had to declare force majeure,' Norsk Hydro spokesman Thomas Knutzen told Reuters.
Hydro said the force majeure would affect its clients mainly based in Asia, the Middle East and to some extent in the United States.
'The largest (impact) will be towards Asia,' Knutzen said, adding that the notice was issued on Wednesday.
Some analysts said the force majeure notice was unsurprising given that the power outage caused a significant drop in temperature in the plant's reduction cells.
The company says full capacity will not be reached this year as had been expected. 'The declaration of force majeure is really just formalising the earlier news that production will be less,' said Stephen Briggs, an analyst at BNP Paribas.
Qatalum, with a design capacity of 585,000 tonnes of primary aluminium, was running at some 60 percent of capacity prior to the outage, the Hydro spokesman said.-Reuters
More Industry, Logistics & Shipping Stories
- Qatar sets up mixed business incubator
- Non-oil sectors ‘biggest contributors to UAE economy’
- Alba educates customers on best practices
- Spinneys to set up distribution centre at Kizad
- Maritime courses draw more trainees
- Dow to showcase at Dubai coatings expo
- UAE aluminium sector backs Syria refugees
- Asry in big vessel repair milestone
- Flare, Jordan form parent company ‘Aereon’
- Drydocks delivers second MCV for US
- ASIS launches amphibious leisure boat
- Taskforce sought to develop Saudi downstream sector
- DP World launches $200m India project
- RAK 'exploring' ceramics unit stake sale
- Mideast carriers top global air freight growth
- DMCA launches maritime solution apps
- Saudi plans oil-to-chemicals plant at Yanbu
- Sabic gets four bids for JV with Mitsubishi Rayon
- Pentair, IDC launch industrial services JV
- Major maritime conference to be held in Dubai
- GPIC wins key IFA certification
- Gulf rules must aid e-commerce: Aramex
- Gulftainer expands 2013 ops by 50pc
- DMCA to take part in Dubai boat show
- Al Namal to launch eco-friendly chillers
- Abu Dhabi city ports to receive facelift
- Kuwait Styrene posts $180m net profit
- Drydocks set for key energy event
- Aramex launches new address check system
- Toshiba in green push at Bahrain expo