Norsk Hydro Extends Relationship with FreeMarkets

Norwegian energy company using e-sourcing solutions to lower costs and reduce supply risk

Norwegian energy company using e-sourcing solutions to lower costs and reduce supply risk

Pittsburgh, PA — January 22, 2004 — Norwegian energy company Norsk Hydro has extended its relationship with e-sourcing solutions provider FreeMarkets.

Norsk Hydro is active worldwide in the exploration, production and distribution of oil, gas and energy, and in the production and sale of aluminum.

Under the terms of a new agreement, Norsk Hydro is using a suite of FreeMarkets solutions, including FullSource and QS, to lower its costs and reduce its supply risk. The agreement extends the relationship that FreeMarkets and Norsk Hydro began in 2000.

"Norsk Hydro is committed to continuously improving its operations to create real value for our customers and shareholders," said Randi Birkeland of Norsk Hydro. "FreeMarkets provides a unique combination of technology and services that enable us to negotiate more efficiently for goods and services and streamline our procurement processes."

Birkeland said that Norsk Hydro has already achieved "major cost savings" using the FreeMarkets solution. "Our new agreement expands the technologies we are using and will only further enhance our sourcing operations and the results we are achieving," he concluded.

Under the terms of its agreement with FreeMarkets, Norsk Hydro is using both FullSource and QS to source a variety of goods and services across its operations.

According to FreeMarkets, FullSource combines technology with expert services in various spend categories, along with industry-specific program management, global market operations services and consulting around specific commodities and supply market dynamics. QS allows companies to create re-usable templates for requests for information, proposal and quotation; collaborate with and manage suppliers; and create and run a variety of competitive bidding and other negotiation activities.