Norwegian aluminium producer Norsk Hydro ASA announced that its subsidiary Hydro Aluminium Metal has signed a Letter of Intent (LoI) to build a new US$120-million aluminium recycling plant in southwest Michigan.
The firm said in a press release that the plant will convert aluminium scrap into aluminium ingot for use in the automotive, transportation, and building sectors. The LoI was countersigned by Midwest Energy and Communications (MEC), who currently owns the tract of land upon which the plant is expected to be built. The tract is in MEC’s Smart Park, which is a planned commercial and industrial development in Cassopolis.
The aluminium recycling plant is expected to begin production by 2023 and boast a nameplate capacity of 120 thousand metric tons per annum. The plant’s seventy employees will produce Hydro CIRCAL, making the site the first large-scale production of the proprietary low-carbon aluminium mix in North America.
Hydro’s new aluminium plant will be fed by a direct rail service to the site, which it says will further reduce the greenhouse gas emissions at the plant. In addition, Hydro intends to utilize renewable electric power from MEC at the site. The firm expects to make a final decision on the greenfield project by the end of this year.
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.