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USD 1 = NOK 7.0 No. 36 - 9 November 1993
CONTENTS:
Top politicians speak out for Rushdie (1)
Upturn for industry (2)
Despite handsome profits - Hafslund will stay on safe side (3)
Oslo Bourse towards USD 27 billion (4)
"Historic" union merger (5)
Holst: Barents cooperation must not aggravate Russian power struggle (6)
Record year for savings banks (7)
Major expansion for Stolt Seafarm (8)
Exciting new nature series planned (9)
Chemistry puzzle solved (10)
norinform/1 9 NOVEMBER 1993
TOP POLITICIANS SPEAK OUT FOR RUSHDIE
Norwegian political leaders Kaci Kullmann Five (Conservatives), Kjell
Magne Bondevik (Christian Democrats) and Carl I. Hagen (Progress Party)
will speak out for author Salman Rushdie during the upcoming meetings of
the Nordic Council and the European Parliament. They will protest the
death sentence the former spiritual leader of Iran, Ayatollah Khomeiny,
issued after the release of the book "Satanic Verses".
Trond Andreassen in the Norwegian support committee for Salman Rushdie
maintains that the party leaders are in this way following the lead of
the Government, which issued a sharp note to the Iran regime after the
unsolved murder attempt on publisher William Nygaard in Oslo in October.
Nygaard, the book's Norwegian publisher, was seriously wounded by an
unknown attacker. The party leaders are also following the example of
Minister of Culture ]se Kleveland, who recently held a speech defending
Rushdie in UNESCO. At present, however, neither the police nor the
foreign office have grounds to connect the murder attempt with the death
sentence passed in Teheran.
In the last month, the support committee has collected USD 41,000 for
international work on behalf of Rushdie. It also has an appeal signed
by 6,000 people which will be handed over to the Norwegian Prime
Minister, Gro Harlem Brundtland. The committee is advising Norwegian
organizations to boycott British Airways because of the airline's
refusal to have Rushdie as a passenger on account of the security risk
this entails.
norinform/2 9 NOVEMBER 1993
UPTURN FOR INDUSTRY
The Norwegian state oil company, Statoil, has posted a profit of USD 390
million after the third quarter. Though this is an improvement of more
than USD 67 million on the same period last year, it was not enough to
satisfy Statoil. "We would like to have seen higher figures, but we're
pleased to see that our improved efficiency measures have paid off,"
says information officer John Ove Lindboee. Total operating revenues
equalled USD 8.5 million compared with USD 8.2 million at this time last
year.
Another of Norway's major industrials, aluminium and ferroalloys concern
Elkem, registered a profit of only USD 7 million after the third
quarter. However, the management is well satisfied with this result,
since the corresponding period of last year ended with a deficit of USD
41 million. The concerted effort to reverse negative trends has
obviously been successful and Elkem is earning money for the first time
since 1989. The operating profit has been improved by USD 33 million.
Dyno (explosives, chemicals, plastics) posted a pre-tax profit of USD 32
million for the first nine months of the year, up USD 1.3 million on
last year's figure. Developments in the commercial explosives division
were disappointing, and it is the chemicals division, the dollar
exchange rate and earnings on securities that have contributed most to
Dyno's improved result. The operating profit after the third quarter
was USD 40 million, slightly lower than last year's corresponding
figure, though there was a slight upswing in the third quarter.
norinform/3 9 NOVEMBER 1993
DESPITE HANDSOME PROFITS - HAFSLUND WILL STAY ON SAFE SIDE
Norwegian pharmaceuticals concern Hafslund Nycomed has turned a pre-tax
profit of USD 160 million after the first three quarters - up USD 7
million on last year's corresponding figure, and the highest profit
Hafslund has ever posted. All the divisions report results on a par, or
better, than those of last year. This has resulted in an increase of
USD 68 million on operating revenues, bringing them up to USD 640
million. In the third quarter alone these revenues increased by 18 per
cent - reaching almost USD 220 million.
Nevertheless, CEO Svein Aaser has decided to put on the brakes. No new
employees will be taken on and he intends to launch comprehensive cost-
cutting measures.
"After several years of growth, it's time we consolidated our position.
Several of our competitors in Europe have already introduced sweeping
measures, including payroll cuts. We don't need to take such a drastic
step, but we must focus more on the costs side of the business," says
Eric Cameron, assistant managing director in Hafslund.
Cameron will not divulge the extent of the reductions and refutes
assertions that dismal market prognoses form the backdrop for the plans
to cut costs.
norinform/4 9 NOVEMBER 1993
OSLO BOURSE TOWARDS USD 27 BILLION
In October the value of companies registered on the Oslo Bourse rose by
USD 3 billion, reaching a total of USD 26.6 billion. This is the
biggest increase the Norwegian Registry of Securities has ever reported
in one single month. Foreign ownership of shares in Norwegian bourse-
registered companies is also on the rise. Foreign ownership rose by USD
1 billion in October, and overseas investors now own 28.9 per cent of
the companies. Securities funds are also on the offensive. The funds
now own 5 per cent of companies registered at the Oslo Bourse.
Shipping has once again become interesting for investors. Through the
stock market, Norwegian shipowners will accumulate USD 810 million in
fresh capital before Christmas. Shares extensions worth USD 220 million
have already been issued, and a further USD 600 million share issue is
forthcoming.
700000000000000000000000000000000000000000000000000000000000000009
. Players on the stock market, share of estimated total value .
. .
. Overseas investors 28.9 per cent .
. Private limited companies 20.5 " .
. The state 13.7 " .
. Small savers 12.0 " .
. Life insurance 8.2 " .
. Independent state enterprises 5.6 " .
. Unit trusts and bond funds 5.0 " .
. Others 6.1 " .
100000000000000000000000000000000000000000000000000000000000000003
norinform/5 9 NOVEMBER 1993
"HISTORIC" UNION MERGER
The two biggest employee organisations in Norway, the Norwegian
Federation of Trade Unions (LO) and the Federation of Norwegian
Professional Associations (AF), are to join forces. The two unions have
signed a letter of intent covering cooperation in the sectors where they
have common interests. This applies particularly in cases where members'
interests in relation to the state and to employers must be safeguarded,
say the leaders of LO and AF. The two organisations still wish to retain
their distinctive characters. They will, for example, maintain
different profiles during their annual wage talks.
LO has currently 777,000 members and AF 226,000. The third biggest
union, the Confederation of Vocational Unions (YS), has 198,000 members.
LO and AF have no plans to incorporate YS in their new amalgamation.
Yngve Haagensen, head of LO, says that his union will uphold its close
cooperation with the Labour Party and the Government. AF stresses that
it will benefit from the cooperation and in return for this will speak
on behalf of LO in fora where it is not represented.
The union agreement has been described as historic, and builds a bridge
between the traditional labour movement and the new occupational groups
with higher education.
norinform/6 9 NOVEMBER 1993
HOLST: BARENTS COOPERATION MUST NOT AGGRAVATE RUSSIAN POWER STRUGGLE
"The cooperation in the Barents region involving the Nordic countries,
Russia and the EC Commission must not exacerbate the power struggle
between President Boris Jeltsin and the Russian provinces," warned
Norwegian Minister of Foreign Affairs Johan Joergen Holst at a recent
Barents region seminar in Oslo. "The conflict between the central and
regional authorities is an important aspect of Russian political life.
The Barents cooperation must not proceed in a manner that will interfere
with Jeltsin's reforms." Holst added that it is important that Norwegian
counties and central authorities work closely together on any programmes
directed at the region.
Environmental cooperation is a high-priority area in the Barents region.
Russia's military establishment has been very restrictive in allowing
outsiders access to sites and information on improperly stored nuclear
waste on the Kola peninsula. A request from Norway to inspect the
Russian Northern Fleet's atomic waste facility has not gone through.
Holst said he would ask the Russian authorities to reconsider the
request.
In this connection, Holst underlined the importance of involving the
military authorities in the cooperation. "President Jeltsin and the
military share a common interest in preserving the Russian state. If
Moscow gets the impression that we are trying to strengthen the region
at the expense of the central government, this could ruin the entire
Barents cooperation. Military interests play a key role here," said
Holst.
norinform/7 9 NOVEMBER 1993
RECORD YEAR FOR SAVINGS BANKS
Norwegian savings banks will continue to earn handsome profits until
1996. The banks are expected to post a record pre-tax profit of NOK 3.7
billion this year.
According to the Savings Banks Association's own prognoses, the future
of the banks looks bright indeed with healthy equity capital levels and
returns reported. Losses are dropping and consumer spending is rising in
line with falling interest rates. Savings Bank Association Managing
Director Einar Forsbak believes consumption will increase even more than
government predictions for next year.
Three-year projections show pre-tax results increasing from NOK 3.7
billion this year to NOK 4.4 billion in 1996. However, a main
precondition is that the savings banks greatly reduce losses and
operating expenses. Loss charts show losses declining from NOK 4 billion
in 1992 to NOK 2.4 billion in 1996. At the same time, the savings banks
will reduce staffing over the next few years by around 600 employees,
mainly through natural wastage.
"The only thing that could upset these estimates is an increase in
interest rates. Today, there is no indication of this happening. Quite
the opposite, interest rates look as though they will continue to fall,"
says Forsbak. He predicted rates would fall over the next two to three
months, possibly by as much one point.
norinform/8 9 NOVEMBER 1993
MAJOR EXPANSION FOR STOLT SEAFARM
The Norwegian fish farming company, Stolt Seafarm has purchased
Prodemar, the world's biggest fish farming plant for turbot from its
previous owners state oil company Statoil and Norsk Hydro. Stolt
Seafarm paid about USD 7 million for the farm, which is situated in
Galicia, in Spain. Expected production next year is 500 tonnes but by
1995 the figure is likely to rise to between 800 and 850 tonnes.
Stolt Seafarm is already heavily involved in fish farming and after the
purchase of Prodemar will supply about 50 per cent of Europe's total
production of turbot. The farm's main competitor is the annual catch of
between 67 and 10,000 tonnes of wild turbot.
This year's turnover of turbot is estimated at USD 57 million, which
will put Stolt Seafarm into the front ranks of the fish farming trade.
Stolt Seafarm produces several fish species. This year it will farm
8,500 tonnes of salmon, worth USD 43 million, in Europe, and a further
6,000 tonnes for the US market. In addition it farms halibut in Norway
and perch in Greece and France
norinform/9 9 NOVEMBER 1993
EXCITING NEW NATURE SERIES PLANNED
NRK, the Norwegian Broadcasting Corporation, and Swedish television have
decided to launch a new television series on the wildernesses of Europe.
"Living Europe" as the series is likely to be called, will be the most
ambitious project of its type ever to have been attempted in
Scandinavia. The initiators are Hans Chr. Alsvik of NRK and Arne Weise
of Swedish television.
The series, estimated to cost around USD 5 million, will put viewers
into close screen contact with the remaining wildernesses of Europe.
Key areas it will cover are flora, fauna, coastal landscapes, marshes
and wetlands. Filming is to take place at a wide variety of locations,
ranging from the islands of the Mediterranean to desolate landscapes
around the Arctic Circle and in the Urals. Important factors the series
wishes to spotlight are how mankind has made use of the ecological
system, and how people relate to nature. Another sector under study will
be the influence of the seasons on European flora and fauna.
Filming will start in March next year, under the direction of some of
the most eminent nature photographers in Europe. The initiators have
also managed to get hold of renowned Green Umbrella Co. producers Peter
Jones and Michael Andrews, who have a number of similar BBC programmes
to their credit.
Television companies throughout Europe have already shown keen interest
in the planned series and are interested in helping to implement it.
Among them are Great Britain, France, Italy, the Netherlands, Germany
and Austria.
norinform/10 9 NOVEMBER 1993
CHEMISTRY PUZZLE SOLVED
When the Norwegian scientist Mari-Ann Einarsrud presented her findings
at a conference in Germany two years ago, her colleagues would not
believe her. Now the 32-year-old senior lecturer at the University of
Trondheim has proved beyond doubt that it is possible to produce the
porous glass aerogel at normal pressure and temperature. Formerly, this
glass could only be produced at high pressure and high temperature - 100
atmospheres and 300 degrees Celsius - a process which could be very
dangerous. Seven years ago, a Swedish factory exploded because of this
high pressure. Einarsrud works at a pressure of one atmosphere and
below 100 degrees celsius. The new method is also cheaper.
Aerogel is a transparent material which insulates about four times
better than rock wool. The weight is also negligible - a mere 0.2
grammes per cubic centimetre. If used in windows, it would combine high
quality with a possible reduction in domestic heating costs of 25 per
cent.
Einarsrud is now applying for a patent, and foreign companies are
clamouring to buy the production rights. In this process, her institute
at the University of Trondheim is cooperating with SINVENT - a company
established to promote production of the technological innovations
developed at the university. When patents are sold, it is important to
get the necessary money to ensure further research, Einarsrud says.
.