The newspaper Morgubladid reports that Nordurál aluminum plant at Grundartangi, which is owned by Century Aluminum, recorded its greatest profits in 2005 since it began operations in 1997, despite the unfavorable exchange rate of the US dollar. The plant had been designed to produce 90,000 tons of aluminum, but in fact production reached a record 93,000 tons.
Nordurál’s income is in US dollars, and the accounts are published in that currency. The low exchange rate and new wage agreements have meant that salary costs have increased proportionately, while electrodes have also incurred increased expense as they are purchased from the Euro area and the dollar has weakened against the Euro.
On the other hand, the price of aluminum has remained very high, production has gone well, all the company’s debts are in dollars, and a great deal of new share capital has entered the company in conjunction with its expansion to 220,000 tons.
The expansion of the plant is going well, and it is envisaged that the first part will be brought into use in February and the rest in August, when expansion will be complete.