The cost of the March cyber attack against aluminum producer Norsk Hydro was between $46.3 to $52.1 million, company officials said.
“The cyber attack that hit us on March 19 has affected our entire global organization, with Extruded Solutions having suffered the most significant operational challenges and financial losses,” said President and Chief Executive Svein Richard Brandtzæg in a post.
While the cyber loss was significant, Hydro said it has a robust cyber insurance in place with recognized insurers.
Between March 18 and 19, the company became the target of a cyber attack involving ransomware, forcing it to disconnect from various sites and factories and switch to manual operations in others.
Preliminary data shows that external sales volumes in Extruded Solutions fell to 333,000 metric tons in the first quarter from 362,000 metric tons in the same quarter last year, the company said in a post. Extruded Solutions is focusing on its value over volume strategy, and had planned for the current quarter volumes somewhat below the same quarter last year before the cyber attack, which further reduced actual volumes.
Hydro’s other business areas – Bauxite & Alumina, Primary Metal, Rolled Products and Energy – have been able to produce close to normal despite the attack, although based on work-intensive workarounds and manual procedures.
The light metals producer said it did not pay any ransom and has filed a complaint with Norwegian police, which has opened an investigation.