Hydro, a Fortune 500 listed company, is Norway's largest publicly owned industrial concern, with 35,000 employees worldwide. In 1996, Hydro attained a net income of USD 960 million on total sales of USD 13,125 million. Hydro-electric power, along with petroleum-based energy, serves as the main foundation for Hydro's expansion strategy and is the common link among our business activities.

Hydro in North America
North America has become a significant geographical area in our global corporate strategy.

Agriculture
Growth based on energy
Hydro is a global leader in the production and marketing of fertilizer with an extensive international marketing and distribution system operating in more than 100 countries world-wide. In 1996, Hydro sold approximately 16.2 million tons of fertilizers world-wide, making it one of the largest fertilizer companies in the world.

Hydro Agri North America, headquartered in Tampa, Florida, is responsible for Hydro's fertilizer activities in this region, including Mexico and Canada. We serve the US agricultural community through a network of nearly 50 terminals, located mainly on the East and West Coasts, and through our extensive ammonia marketing, trading and shipping activities.

Phosphate fertilizers produced in a Florida-based joint venture with Farmland Industries are exported throughout Hydro's global marketing and distribution system. Nutrite, the Canadian fertilizer company with chemical production and bulk blending activities in eastern Canada and northeastern USA, was acquired in 1996.

Light metals
Growth based on hydroelectric energy
Hydro is a leading supplier of aluminum and the largest magnesium producer in the world. The production process, based on hydroelectric power, takes place in five aluminum smelters and one magnesium plant in Norway and another magnesium plant in Canada. Hydro also has an extensive production system for semi-fabricated aluminum products in Europe as well as in the USA.

The North American automotive industry is a priority market for Hydro's light metals due to the growing use of light metals in automobiles. Aluminum and magnesium reduce weight in cars, significantly reducing fuel consumption and increasing engine performance. In addition, both metals can be easily and cost-effectively remelted for recycling purposes. We are actively working with the automotive industry to develop new solutions and new technology to build light-weight vehicles.

Hydro's magnesium production plant in Quebec, Canada, is one of our two plants supplying the North American market with magnesium and is also actively involved in recycling of customer die-cast returns.

Hydro co-operates with a number of auto-makers to develop heat-exchange systems and liquid lines, structural solutions, and wheel rims. We have several production facilities in the USA providing extruded aluminum parts for the industry. Three of the facilities -- in Adrian, Michigan; Puckett, Mississippi; and Rockledge, Florida -- primarily make tubing and other parts for heat transfer systems such as radiators and air conditioners. Hydro Aluminum Automotive Structures in Holland, Michigan, produces structural car parts including sub-frames, seat parts and bumpers.

Hydro has a tolling agreement with Golden-dale Aluminum in Washington State, and our subsidiary, Hydro Aluminum Louisville, in Kentucky, handles the plant's total yearly aluminum output of 160,000 tons.

Oil and gas
Energy for a growing world
Hydro is one of the leading oil companies on the Norwegian continental shelf and is the operator of a number of fields. We are also involved in the trading and retail marketing of petrol and oil products.

In 1996, Hydro's share of oil and gas production amounted to 13.5 million tons of oil equivalents. The company's remaining proved oil and gas reserves increased 166% over 1996 production, to 226.6 million tons of oil equivalents.

Hydro expanded into North American oil and gas exploration and development operations in 1996 by entering into an agreement on long-term co-operation with Petro-Canada whereby the two companies exchanged ownership interests in Canadian and Norwegian fields.

Petrochemicals
Hydro produces polyvinyl chloride (PVC) in Scandinavia and the United Kingdom, and we also have production facilities for ethylene and vinyl chloride monomer (VCM) in Scandinavia. PVC is primarily sold in Northern Europe, while VCM is marketed to PVC producers both in Europe and in Asia.

Industrial chemicals
Hydro's fertilizer production facilities are also used in the manufacture of industrial gases, technical nitrates and nitrogen-based chemicals. These activities are organized within the Industrial Chemicals division.

The most important gases are carbon dioxide and the atmospheric gases nitrogen, oxygen and argon. These gases are used in the mechanical and process industries, in foodstuffs and beverages and for environmental improvement products.