The sum of technological talent: Hydro and PADNOS together in a joint venture that will transform waste into valuable resource

Two major companies, Hydro and PADNOS, have joined forces to create a new company that will enable greater recycling of post-consumer aluminum scrap. This joint venture will utilize Hydro’s patented sorting technology called HySort, bringing this advanced technology to the United States for use in aluminum sorting.

The Hydro and PADNOS companies have created a joint venture called Alusort LLC in which each owns 50%. This company is in the scrap metal management and recycling business and is based in Michigan. Both companies have agreed to install a Hysort sorting machine at PADNOS’ existing sorting center in Granville, Michigan. Production is expected to begin in four years, in 2024. Hydro’s estimated investment for this project is around US$4 million.

“Going deeper into the scrap pile and putting more aluminum back into the cycle not only helps to reduce emissions and the impact on nature, but is also good business. Alusort represents a great opportunity for both companies to strengthen their leading positions in recycling. With our state-of-the-art sorting technology, the joint venture can handle the most mixed and challenging types of scrap that would otherwise have ended up in landfills. Instead, we bring it back to life as value-added, low-carbon products for automotive, building and other key aluminum end markets.”added President and CEO Hilde Merete Aasheim.

Alusort has implemented an innovative sorting technology that will make it possible to process up to 20,000 tons of aluminum scrap per year. The PADNOS team will be in charge of day-to-day operations, while Hydro personnel will provide technical support and supervise the tasks performed.
On the other hand, Alusort will be primarily responsible for supplying Hydro’s recycling plants located in Cassopolis, Michigan and Henderson, Kentucky, with sorted aluminum scrap. They may also supply other Hydro facilities in the United States and Canada. On the other hand, the remaining metallic materials will be sold to third parties.

According to Jonathan Padnos, president and CEO of PADNOS, the company focuses on finding new ways to recycle different materials such as ferrous metals, plastics and aluminum. Collaboration with other companies and market demand are key to innovation in the field of recycling. That is why the partnership with Hydro through its joint venture Alusort is ideal for taking aluminum recycling to the next level.
Obtaining recyclable materials after use has become essential for companies such as Hydro in the United States, which specializes in aluminum recycling. When various objects such as automobiles, buildings or electronic devices reach the end of their useful life, their components may end up in landfills or be reused through the recycling process.

Thanks to HySort technology, it is possible to recover aluminum alloys used in obsolete products. This allows these materials to be reintroduced in the same or similar applications to extend their useful life. Hydro’s recycling center in Dormagen, Germany, currently employs HySort technology that was developed in Europe. This innovation has been key to the recycling process at the center and has been successfully implemented.
Hydro also aims to produce 120,000 tons of aluminum ingots annually at its Cassopolis plant. Although the company already has 11 recycling plants in the United States and one in Canada, this will be the first to become a major producer of Hydro CIRCAL.
The Hydro CIRCAL brand is characterized by its use of aluminum scrap obtained from recycled products, which represents at least 75 percent of its total composition. This scrap is certified by external auditors DNV and also stands out in the market for having a very low CO2 footprint of only 2.3 kg of CO2e per kg of aluminum produced or even less.

According to Hilde Merete Aasheim’s statement, with the incorporation of Alusort in Europe, an advanced recycling technology will be implemented that will allow obtaining greater value from the sorting process in the United States. In addition, this acquisition will provide access to a wider range of scrap and expand the supply of high quality recycled automotive alloys to meet the needs of the most demanding customers. Aasheim also noted that Alusort will play a key role in the large-scale production of Hydro CIRCAL.