Norsk Hydro’s first loss of the cyber attack of more than $40 million

OSLO (Reuters) – Norwegian aluminium maker Norsk Hydro may have lost more than $40 million in the week following a cyber-attack that paralysed parts of the activities, and a full recovery of the IT systems weeks or more, the company said.

FILE PHOTO: A sign warning employees not to connect devices to the network in the wake of a cyber-attack is seen at the headquarters of aluminium producer Norsk Hydro in Oslo, Norway, March 19, 2019. REUTERS/Gwladys Fouche/File Photo

Norsk Hydro had to halt some of its production on March 19 and switching of other devices manual operation after hackers locked systems with ransomware.

While Hydro’s primary metal business, and most other units cannot run on the production with solutions and manual solutions, one of the main production units of effort to restore, a manager told a press conference on Tuesday.

On a preliminary basis, the financial impact during the first week was estimated at between 300 million and 350 million Norwegian crowns ($35 million-$41 million).

“Hydro has a solid cyber risk insurance with authorised insurers, with global insurer AIG as a result,” the company said.

“The insurance has a ceiling,” Chief Financial Officer Eivind Kallevik told at the press conference. He refused to be more specific about the policies of the cap.

Hydro, meanwhile, is still trying to the affected companies a back-up of the speed.

“In the most affected area of goods, Extruded Solutions, the production is now on a market share of 70-80 percent, except for the Building Systems business unit, where the activities remain almost at a standstill,” Hydro said.

The company said it hoped to see “a reasonable degree of production and transportation” of the building systems by the end of the week.

The company is the extrusion company to transform aluminum ingots into components for designers, builders, and other industries.

Hydro has said that not paying hackers to unlock the files, preferring instead to restore them from a backup servers.

“The company is now in the recovery phase after the attack, gradual recovery of IT systems in a safe and reliable way to ensure progress in the direction of the normal course of its business, while limiting the impact on people, activities, customers, suppliers and other partners,” Hydro said in a statement.

Kallevik said at the press conference that a full recovery of all systems would take “weeks or longer”.

Norsk Hydro’s shares were down 1.9 percent on Tuesday, lagging a 0.5 percent rise in Norway’s benchmark stock index.

Writing by Terje Solsvik, editing, Gwladys Fouche and Jane Merriman

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