Norwegian aluminium producer Norsk Hydro ASA has entered into a deal to buy land in central Spain for the construction of a cutting-edge aluminium recycling plant.
Hydro says the plant in Torija will have a production capacity of 120 thousand metric tons per annum and employ about 65 workers. The plant will increase Hydro’s capacity for producing low-carbon aluminium as well as retaining more scrap aluminium on the European continent.
A subsidiary of the Pulsar Properties Group listed the property. Hydro says the project will cost between €130 million and €140 million, and the firm will ultimately make the decision by the end of 2023.
Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal, said in a press release that the investment is the firm’s next step in maximizing its presence in the low-carbon aluminium sector.
“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.”
“Since aluminium is infinitely recyclable, keeping post-consumer scrap in the loop is crucial, as recycling requires 95 percent less energy than primary production,” Kallevik continued. “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.”
The plant will be equipped for producing Hydro CIRCAL extrusion ingot, which consists of at least 75 percent post-consumer content. The new plant will bookend the compatriot Azuqueca plant in adding more value-added aluminium products to the region.
“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,” Kallevik concluded.