HYDRO TO BUILD A NEW STATE-OF-THE-ART RECYCLING PLANT IN MICHIGAN

Hydro will invest $140 million in the construction of a new state-of-the-art aluminum recycling plant that will produce 120,000 tons of aluminum extrusion ingots per year in the USA.

According to the multinational, construction will begin in the second quarter of 2022 and production will start in 2023. The decision to invest in the Cassopolis plant follows the work done by Hydro’s organization to mature the project design, as well as further discussions with potential customers and suppliers in the area. The investment is pending the final construction decision, which is expected in the first half of 2022. The new plant will generate approximately 70 direct jobs.

For Eivind Kallevik, Executive Vice President of Hydro Aluminium Metal, “the Cassopolis greenfield development will mark the first large-scale production of Hydro CIRCAL® extrusion ingot in North America. We look forward to offering this high quality, low carbon product to our most demanding customers” adding “the Cassopolis project represents a key step towards Hydro’s goal of doubling the recycling of post-consumer scrap in its production processes and providing an EBITDA increase of NOK 0.7-1.1 billion from recycling operations by 2025”.

It should be noted that Hydro has an exclusive Hydro CIRCAL® extrusion ingot that contains at least 75% post-consumer scrap certified by external auditors DNV GL and has a market-leading CO2 footprint of only 2.3 kg CO2e/kg aluminium. In view of the growing importance of sustainably produced aluminium, several North American customers have expressed interest in Hydro CIRCAL®.

Applications include automotive and other transportation sectors, consumer applications and building systems. In anticipation of the Cassopolis capacity, Hydro will deliver initial quantities of Hydro CIRCAL® to U.S. customers from its Commerce, Texas plant before the end of 2021.

In addition, by applying technologies developed at Hydro’s recycling plants in Clervaux (Luxembourg) and Azuqueca (Spain), Hydro will be able to recycle up to 40,000 tonnes of post-consumer scrap at the new facility, while delivering high quality aluminium capable of meeting the demanding requirements of the automotive industry.

Hydro’s proposed investment will be supported by grants from the U.S. Economic Development Administration, as well as pending state and local incentives, to develop the infrastructure at the Smart Park. Hydro will use direct rail service to bring supplies to the plant, which will help reduce the overall carbon footprint of its operations, and plans to partner with MEC to source renewable electricity for the facility.