Hydro to build new aluminium recycling plant
Hydro has signed an agreement to purchase land in Torija, Spain, with the aim of constructing a state-of-the-art aluminium recycling plant.
The plant will have 120,000 tonnes of annual capacity and around 65 direct employees. The facility will strengthen Hydro’s capabilities to produce low-carbon aluminium and ensure more scrap is kept in Europe
The agreement has been signed with a subsidiary of the Pulsar Properties Group. The total project investment is currently estimated to be between €130-140 million, depending on the final facility design, market conditions and macroeconomic development. Hydro aims to make a final investment decision by the end of 2023.
“The European and Iberian market for aluminium continues to grow. This investment will be an important step towards Hydro’s ambition to recycle more post-consumer aluminium, strengthening our position to capture value from growing demand for greener and circular aluminium,” says Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal.
“Since aluminium is infinitely recyclable, keeping post-consumer scrap in the loop is crucial, as recycling requires 95 percent less energy than primary production. Increased recycling of post-consumer scrap is an opportunity for Europe to secure domestic access to aluminium, which is a strategic issue in view of multiple crises facing Europe,” says Kallevik.
The demand for aluminium towards 2030 in Hydro’s main markets is set to grow at around 3 percent per year, and low-carbon aluminium demand is expected to outpace the rest of the market. However, every year, around 1 million tonnes of used aluminium scrap leaves Europe.
“Thanks to our state-of-the-art technology and competent workforce, we aim to dig deeper into the European scrap pile. This investment will enable us to bring more low value scrap types back to life as value added products for electrical transport solutions, building systems and renewable energy applications that will drive Europe’s green transition,” says Kallevik.