In 2022, electricity prices reached an all-time high. This prompted the industry to demand crisis aid from the state. Among those who asked the authorities to intervene was the aluminum plant Alcoa Norway: – There is no doubt that we have a rather tough situation, Alcoa’s energy manager Ole Løfsnæs told news in August 2022. A few weeks later they were among the companies that demonstrated outside the Storting. Energy manager Ole Løfsnes at Alcoa. Photo: Dan Robert Larsen But at the same time the billions poured in. In 2022, the aluminum plant made a profit of NOK 2.5 billion, one of their best years ever. news sent several questions to Alcoa in mid-December. They replied that they could not be interviewed. Alcoa produces aluminum at Lista in Agder and in Mosjøen in Nordland. In Southern Norway in particular, electricity prices have been high. Therefore, the plant closed one of the three production lines at Lista due to expensive electricity. Few traces of crisis Power-intensive industry fared particularly well in 2022 compared to other industries. news has summed up the accounts of all companies per industry, to see how the economy has developed (see fact box). news’s figures news has downloaded operating income and operating profit from all Norwegian companies subject to accounting from BizWeb. The companies are then grouped by industry codes (NACE). Based on this, we have summed up the results of all companies in the industries, in order to find out how the margins in the industries as a whole have developed. The margins are based on operating profit, i.e. operating profit divided by operating income. The figures are for the period 2012 to 2022. The calculations show that operating margins in several power-intensive industries show few signs of a crisis in 2022: The aluminum industry increased margins from 3.83 per cent in 2021 to 16.10 per cent in 2022. According to news’s calculations which go back to 2012 , the operating margin in the industry has never been higher. Companies that produce paper pulp increased their operating margins from 10.54 percent in 2021 to 24.04 percent in 2022. That is the highest operating margin in the industry in at least ten years. Production of lead, tin and zinc increased margins from 8.79 percent in 2021 to 25.05 percent in 2022. It is also the highest operating margin in the industry in at least ten years. Casting of iron, steel, light metals and other non-ferrous metals together increased margins from 2.59 per cent to 4.14 per cent in 2022. Many of the companies in power-intensive industries make goods that are sold abroad. Because the krone became increasingly weak, Norwegian companies received more kroner for the goods they sold abroad. Thought the industry was in a crisis The employer organization Norsk Industri was among the players who were concerned and asked the authorities to intervene. – The industry is in a crisis. Only the authorities can do something about it right now, said Stein Lier-Hansen, then head of Norsk Industri to news in January 2022. Stein Lier-Hansen, then head of Norsk Industri, was worried about the industry. Photo: Snorre Tønset / news In an interview with FriFagbevegelse in January 2022, Alcoa was used as an example of an industry and a business with huge electricity costs. But now director Ole Børge Ytredal of Norsk Industri is happy that things went well with the aluminum industry in 2022. – But what do you think that you were so worried when it turns out that things have gone so well? – Fortunately, it went so well in 2022, and of course there was a bit of variation between the various works. Many in the power-intensive industry have long power contracts, but they must be renewed once, he replies and continues: – Then we are completely dependent on the power market being well-functioning, and that there is enough access to power, so that it is possible to go and buy power contracts at prices that are livable for the Norwegian industrial companies. Still concerned Many large industrial companies have long-term power agreements. There are agreements made between seller and buyer for many years, often at a price that is far below what consumers pay. The exact price in such agreements is secret. But Norsk Industri is still concerned about the industry’s access to cheap power. – You were worried in 2022, but then things went well for many. You are concerned at the end of 2023. Why then should we believe that now the concern for the industry is actually real? – Economies go up and down. We want the framework conditions for the industry to be as good as possible. Access to power must be secure. Traditionally, access to power has been an advantage for Norwegian industry, and we want it to continue to be, Ytredal replies. news has requested an interview with Industry Minister Jan Christian Vestre (Ap). He did not have the opportunity to be interviewed.
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Sounded the crisis alarm – then the aluminum plant made a profit of billions – news Norway – Overview of news from different parts of the country
