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50 years for Hydro Aluminium
Wilson and Hydro Aluminium could in 2006 mark 50 years of continuous cooperation. Wilson has therefore since 1956 been a part of the logistics system of what has become one of the world’s largest aluminium producers. Hydro Aluminium is today the shipping company’s largest customer, representing an annual freight income of around MNOK 125. The cooperation with Hydro also tells us a great deal about the intimate relationship between industry and sea transport and how reasonably priced and efficient sea transport has been a key factor in Norway’s industrial development. The state owned Årdal & Sunndal Verk (ÅSV) history can be traced back to 1947 when the state took over the German founded factory in Årdal in Sogn. The company was expanded in 1954 with a new plant at Sunndalsøra, which made ÅSV the largest Norwegian aluminum producer. In 1960, the Department of Industry presented plans to expand production in Norway from 200000 to 5-600000 tons which was to be combined with a large scale expansion of hydropower which would provide the energy required. This expansion supported a major investment in aluminum plants which included the contribution of capital and technology by foreign partners. Mosjøen Aluminium started operation in 1958 for Elkem and Alusuisse. Plans for the construction of aluminum plants at Karmøy (Norsk Hydro and Harvey Aluminium), Husnes (Alusuisse and Norwegian parties) and Lista (Elkem and Alcoa) were adopted in the early 1960’s. Production started at Karmøy and Husnes in 1967 and at Lista in 1971.
Important customer relationships
The growth in industry in general provided opportunities for a carrier such as Wilson for continues growth and development. This formed the basis for the strong growth and renewal of the fleet, including the construction of
40 new paragraph vessels in the period 1960-1982. The take over of the Høyanger factory by ÅSV in the 1960’s contributed to increased cargo volumes. However the major consolidation first began in 1986 with the merger of ÅSV and Alnor on Karmøy to form Hydro Aluminium. The merger also included Sør-Norge Aluminium at Husnes.
Wilson’s great breakthrough in its cooperation with ÅSV came in association with modernization of the plant at Årdal in 1984/85. An important environmental initiative was related to the transport of pitch, which previously had been transported in bulk and generated significant dust problems. The shipping company here could contribute innovative solutions in cooperation with charterers, who jointly developed a transport system for pitch in liquid form heated to 220 degrees Celsius. M/S Leiro was extended and equipped with 1200 ton tanks at a cost of MNOK 14 and used on the route between Rotterdam and Årdalstangen. This was combined with bulk loads and outbound shipment of raw aluminum.
The concept was successful and was expanded to include Sunndalsøra in 1986. The same system was used, which required the conversion of the sister vessel Lindo.
Complicated transport requirement
Hydro Aluminium production has since the 1980’s migrated from raw aluminum to more highly processed products, to semi manufactured products for rolling, or finished products such as sheets, profiles and vehicle components. Special alloys are also supplied as recycled metals. This has contributed to the changes in the company’s transport requirements and logistics system.
After having tried to combine this system transport with scheduled freight traffic between West-Norway and the continent, Hydro Aluminium in 2002/03 chose to expand its cooperation with Wilson EuroCarriers to also include unit cargo, liquid pitch, semi manufactured products and finished products.
This service was provided using the side-loading/RoRo ship Wilson Star and a weekly sailing plan between Husnes, Karmøy and Rotterdam with billets and finished products on pallets and mafi units, and with the high speed side-loading ship Wilson Express with finished products from Sunndalsøra. The ships transport unit load based raw materials such as anodic carbon and alloy metals on the return trip from Rotterdam.
The sister vessels Leiro and Lindo operate fortnightly sailings between Årdalstangen, Høyanger and Amsterdam with billets outbound and liquid pitch, unit loads and petcoke on the return leg. Wilson Fjord in addition sails from Sognefjorden with casting alloys in containers and billets and returns with empty containers and unit cargo goods.
Petcoke is also transported from Immingham to the aluminum plants by Wilson’s 3500 ton bulk ship. This is included in the general agreement but is outside the system transport.
The general agreement provides Hydro Aluminium with the high degree of flexibility required to meet the needs of Hydro’s complex transport requirements. This shows that the system meets current requirements well. Wilson is an important cooperative partner for the logistics system in Europe. The system transport demonstrates the shipping company’s ability to find tailor made transport solutions
for a large customer. That Hydro Aluminium in 2006 also was Wilson Euro-Carriers’ largest customer provides a further reason for marking 50 years of cooperation
Dag Bakka Jr is a shipping author writing about the intersection between history and today’s shipping, finance and culture. He splits his time between the Scandinavian Shipping Gazette and independent projects. |
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