IMPROVED performance from its polymers division ensured that 2004 was a good year for Norwegian group Norsk Hydro.

The company employs 400 workers at its Hydro Polymers UK plant, in Newton Aycliffe, County Durham.

The Oslo company, which marks its centenary this year, revealed operating income had soared from about £710m in 2003 to about £974m.

The group produces PVCs, aluminium, gas and oil.

It is one of two plants producing PVC in the UK.

Chief executive Eivind Reiten said: "As a result of good market conditions and significant operational improvements, Hydro enters the company's 100th year with a solid financial position.

"Hydro is well positioned for continued profitable growth. Priorities going forward will include adding new oil and gas resources to our portfolio, continued improvements of our operations in aluminium to improve our competitive position and continuous research and innovation to add value throughout all our business activity."