Hydro Agri and Hydro Business Partner agree to continue customer-supplier relationship
One step in the preparations for establishing Hydro Agri as a separate listed company has been the signing of independent commercial agreements on the delivery of IS/IT and maintenance services between Hydro Agri and Hydro Business Partner. These will replace previous internal agreements.
Hydro Business Partner will deliver IT/IS services to the new Agri company all over the world. The agreement for maintenance services covers the Norwegian production plants - Porsgrunn, Glomfjord and Rjukan.
The agreements that have now been signed reflect both Hydro Agri's need to ensure optimal, competitive coverage of critical deliveries and Hydro Business Partner's objective of being a competitive provider of services within these areas.
Several of Hydro Business Partner's business areas have a significant external turnover. Once Agri is an independent company, the share of external trade will increase significantly, it was stated in announcement made to the press on Monday.
Hydro Agri is the world's leading supplier of mineral fertilizer with particular strength in ammonia and nitrogen fertilizer. Hydro Agri has a local presence in more than 50 countries and sold 21.7 million tonnes of fertilizer to customers in 120 countries last year through its world-wide sales and distribution system. In June 2003, Norsk Hydro's board decided to prepare for a spin-off of Agri as an independent company to be listed on the Oslo Stock Exchange in 2004.
Hydro Business Partner was established in 2000 as Hydro's internal, commercial supplier of support and services, and had a turnover of NOK 3.7 billion in 2002. Hydro Business Partner delivers services in the following product areas: IT/IS, maintenance and refractory work, offshore, accounting, office and HR administration and communication.