Presentation1
Landtransport kontra sjtransport, hva pvirket valgene i Hydro Aluminium?
Presented by Elisabeth Holmsenlesund 24. March 2010
(EH) 2010-03-24
(#) 2010-03-24
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Norsk Hydro Business AreasCEOSvein Richard BrandtzgEnergyOla SterPrimary MetalHilde M. AasheimMetal MarketsKjetil EbbesbergRolled ProductsOliver BellExtruded ProductsJohnny UndeliProjectsTom Rtjer
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Casthouse Products
Sheet Ingot
Extrusion Ingot
Wire Rod
Foundry Alloys
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L&D Casthouse outbound transport
Casthouseproduction
InboundInternalOutboundTruckTruckDirect truckingRailBargeRailSeaInternaltransport
CustomerslocationsSuppliersStevedoringLiquidRemeltScrapAlloys
Loading
Various transportation modes in the Casthouse value chain
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Distribution pattern and volumes 2010
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Norwegian system820 000 mt ~ 32 500 trucks
Norwegian Casthouseproduction
TruckTruckDirect trucking/train165 000 mt~ 6600 trucksRailBargeRailSea transport1100 000 mt ~ 550 VesselsCustomerslocationsStevedoring
22 000 mt260 000 mtAnnual sales orders approx. 50.000Transport volumes
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Customer Demands Flexibility Lead time OTD Preserved qualityDecision on solution and providerCost Total cost to market Front haul/back haulHES Type of Vessel Procedures ProvidersNo of kilometers on roadSolutions availability Fleet development Port restraints Truck capacity Front haul/back haul FlexibilityQuality Number of handlings Exposure to weather Load securing ReliabilityDecision parameters
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Case example rdalBackgroundrdal has a yearly production of approximately 190 kmt SI and 130 kmt FA.
Hydro has a major market for FA products in Central Europe
In 2009 there was a shift in volumes. Hydro needed to redesign the logistics solution in Sognefjorden.
OptionsExtra vessels to Amsterdam
Direct trucking to Central Europe
Re-open vessel solution to Baltic (Rostock)
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Alternatives - illustration
1600 km / 1450 km1650 km / 1300 km1900 km / 1350 km Not significant differences in trucking distance to between alternatives
Back haul / front haulrdal Poland back haul Amsterdam Poland front haul
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Order fulfillment timeline (leadtime) Norwegian sources - Normal orders - Make-to-Order production
12111098765432112345678911234567891011121314151617181920
Production planningPCall off/Booking/OptimizingShipmentScandinavia 14 days (EI)Continental Europe3.5-4 weeksIberia4-5 weeks
TruckingSeaborneStevedoringMediterranean4-7 weeksItaly & Greece2019181716151413
ProductionTrucking FA toCentral Europe3-4 weeks
Sales & Marketing; Metal Management Primary MetalLogistics & Distribution
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The alternatives - advantagesTrucking Norway - Central Europe is back haul High flexibilityShort lead-timeLimited no of handlings preserves qualityCost advantageous
Seaborne thru Amsterdam Experienced and professional providersReasonably good vessel availability Continent: good truck availability - alternatives available
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The choice Direct trucking to Central Europe
A competetive vessel solution via a port in the Baltic The future preference
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www.hydro.com
(#) 2010-03-08
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