Landsvirkjun

Norsk Hydro bids for Rio Tinto shares in Iceland

February 27, 2018

Norsk Hydro ASA has made a binding offer for all shares in Rio Tinto á Íslandi hf., the owner and operator of the aluminium ÍSAL smelter in Straumsvík, Iceland. Norsk Hydro expects to complete the sale in the second quarter of 2018. More information on the bid can be accessed on Norsk Hydro ASA’s website.

Norsk Hydro ASA was founded in 1905 and 34% of the company is owned by the Norwegian state.  The company has extensive experience in operating aluminium plants and employs almost 35,000 people in 40 countries. The company's credit rating is BBB at Standard and Poor's and Baa2 at Moody's.

Landsvirkjun and the aluminium plant in Straumsvík have enjoyed a long and successful business relationship. The plant’s operator was the first major energy intensive customer to sign a power purchase agreement with Landsvirkjun in 1966. Rio Tinto in Iceland is Landsvirkjun’s second largest customer. The current power purchase agreement provides approx. 390 MW of power and is valid from 2010 until 2036.

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