By Joshua Kirby

Norsk Hydro said its Qatari aluminum smelter would continue production at a reduced level rather than fully shutting down, as had been planned last week after gas supply was disrupted by Iranian attacks.

The Norwegian company's Qatalum plant, an equally owned joint venture with a subsidiary of state-controlled QatarEnergy, will maintain aluminum output at around 60% of total capacity, Norsk Hydro said in a release Thursday. Last week, Norsk said Qatalum would be fully shut down after QatarEnergy halted its output of liquefied natural gas, vital to industrial extraction of the much-used metal, following attacks on its energy facilities.

Qatar is among the Persian Gulf states caught up in reprisals from Tehran after an escalation of conflict with the U.S. and Israel at the end of last month. A Qatari minister warned at the start of the week that Gulf exports could shut down production within days, with hydrocarbon-carrying tankers unable to pass through the key Iran-controlled Strait of Hormuz.

But despite the continued conflict, with Iranian forces hitting three cargo ships attempting to cross the waterway Wednesday, QatarEnergy has assured a continued supply of gas, Norsk said.

"QatarEnergy has now confirmed that gas supply will continue until further notice at a level, enabling Qatalum to maintain aluminum production at around 60 percent capacity," the company said.

Expectations for Norsk's earnings this year should get a boost from the continued production, RBC Capital Markets analysts Marina Calero and Nana Adwoa Sereboo wrote in a note following the announcement.

"We see Norsk Hydro as well-positioned to take advantage of current conditions in aluminum markets," they said.

Curtailment of production has been carried out in a safe and controlled manner, Norsk said.

"Together with continuing operation at around 60% this improves conditions for a future restart," it said.

Norsk said it didn't know when a full restart of the Qatalum smelter would begin.

"Hydro is working to mitigate the consequences of the curtailment and shipping disruptions," it said. "The safety of Qatalum employees remains the highest priority."

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

March 12, 2026 08:21 ET (12:21 GMT)

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