Storvik has signed a multi-year contract with Hydro

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Storvik in Sunndalsøra has signed a multi-year contract for the supply of cast iron and cast steel products to the five Hydro plants in Norway.

The contract (contract term and option), which has a multimillion-dollar value, runs for a period of seven years. Storvik has worked closely and well with Hydro since the 1990s and the previous framework agreement was signed in 2013 and was valid until the new contract came into force on 1 July 2020.

This mainly concerns metal pipes used for tapping aluminium from the electrolytic cells, but the agreement also includes other cast items. “For a long time, we have had a very good collaboration with Hydro and experienced a positive growth together through product improvement and cost-efficiency measures. We are very pleased and proud to be their preferred supplier,” says Ronny Reitan, department manager for the area Castings at Storvik.

The products – drain pipes, moulds, grabs, etc. – are cast in the Czech Republic and shipped to Sunndalsøra where Storvik has a security warehouse. Then the Norwegian aluminium plants will be supplied from here.

Multi-year contract “a win-win-situation”

Storvik started as early as 1995 with the supply of castings to Hydro, where the development of their own material qualities, in collaboration with Hydro, was a clear success factor. Quality and a reduced total cost of ownership (TCO) has always been a focus, a testament to this is when Storvik was awarded Hydro’s Cost Improvement Award in 2020.

The contract that has now been signed includes several improvement clauses, including optimizing design, increasing the product lifetime value, improving the logistic solutions, and focusing on sustainability. “We experience this as a win-win situation for both parties and look forward to working together on sustainable solutions,” says Reitan.

Storvik currently has 116 employees in Norway, plus eight in the Czech Republic and Iceland, with sales revenue of about NOK380 million (€35.8m) in 2019.

Storvik was started as a farm smith in 1913; the focus today is on the aluminium industry, as well as offshore.

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